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Chapter 16 Advertising and Public Relations

Chapter 16 Advertising and Public Relations . Objectives. 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. List and compare the major advertising media.

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Chapter 16 Advertising and Public Relations

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  1. Chapter 16 Advertising and Public Relations

  2. Objectives • 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. • List and compare the major advertising media. • Outline the organization of the advertising function and the role of an advertising agency. • Identify the principal methods of sales promotion. • Explain the roles of cross promotions, public relations, publicity, and ethics in an organization’s promotional strategy. • Explain how marketers assess promotional effectiveness.

  3. Advertising • Involves paid nonpersonal communication through various media with the purpose of informing or persuading members of a particular audience. • Used by marketers to reach target markets. • A typical consumer is exposed to hundreds of advertising messages each day. • Provides an efficient, inexpensive, and fast method of reaching the ever-elusive, increasingly segmented consumer market.

  4. Two Broad Categories of Advertisements • Product advertising is nonpersonal selling of a particular good or service. • This is the type of advertising the average person usually thinks of. • Institutional advertising, in contrast, promotes a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographical location, or government agency. • Often closely related to the public-relations function of the enterprise.

  5. Advertising Objectives in Relation to Stage in the Product Life Cycle • Informative advertisingseeks to develop initial demand for a good, service, organization, person, place, idea, or cause. • Persuasive advertisingattempts to increase demand for an existing good, service, organization, person, place, • Reminder advertisingstrives to reinforce previous promotional activity.

  6. Where do you think Quiznos is on the Product Life Cycle? As the Advertising Manager what form of advertising would you recommend?

  7. Comparative Advertising

  8. Creating Ads “What does J. Walter Thompson stand for? We are for Brands. We are for bringing Brands to life. We are for bringing Brands back to life, where necessary. We are for nurturing, building and sustaining Brands so that this should not become necessary. We are for Brands you can eat, or drink, or drive, or read, or wear, or give, or receive, or join; technological Brands, trendy Brands, traditional Brands. We are for Brands which cross borders and Brands from across the street. More than anything, we are for Branding Ideas vivid enough to make all of these things possible, in every communications channel conceivable. After all, we have our own Branding to think about...”

  9. Advertising • Retail Advertising, which includes all advertising by retail stores that sell goods or services directly to the consuming public. • Varies widely in its effectiveness. • Source, message, and shopping experience seem to affect consumer attitudes toward these advertisements. • Cooperative advertising - A retailer often shares advertising costs with a manufacturer or wholesaler. • Originated to take advantage of the media’s practice of offering lower rates to local advertisers than to national ones. • Can create vertical links.

  10. Creating an Advertisement • Develop Goals • Create Plan • Develop and create ad • Select media

  11. Elements of the Advertising Planning Process

  12. Advertising Messages • Starts with the customer benefits and moves to the creative concept phase. • Marketers work to create an ad with meaningful, believable, and distinctive appeals.

  13. Anatomy of an Ad

  14. An Advertisement Should… • Gain attention and interest • Inform and/or persuade • Eventually lead to a purchase or other desired action.

  15. Ad Text • Serif font • Easy to read • Tiny horizontal strokes help reader’s eye flow from letter to letter • Times, Garamound, Goudy, New Century Schoolbook • Bold sans serif (without serifs) • Good for headlines & subheads • Bring more attention since slow reader down • Arial bold, helvetica black, univers bold, trade gothic • Turn Eye Appeal into Buy Appeal • www.MacGraphics.net, Karen Saunders, 888-796-7300

  16. Comparison of Advertising Media Alternatives

  17. Interactive Ads WSJ 5/05 • By 2010, 80% of viewers will watch TV on demand and skip through traditional commercials • Interactive ads allowing viewers to opt to get more info about products • Chrysler- 15,000 click-throughs for more info in 3 weeks • Old Spice Red Zone Body Wash, Reebok, Cadillac • Sony’s “XXX:State of the Union” ad on satellite-tv • On-screen icon linked to 30-min. program about the movie

  18. Outdoor Ads – $23B Industry in Growth 2006 • CBS won bid for London subway adv. (Tube) • Development team of 18 in London for 2 yrs. • TV screens & projectors beaming ads on walls • Will stick up glueless posters by 3M • #2 growing adv. segment after Internet • Clear Channel billboards in London with reflective cells that change color

  19. Interactive Ads • Sharp’s Aquos LCD, 9-04 • Tell mysterious story -www.moretosee.com • Consumers must go to the Web for the conclusion • Live performances of story in NY storefront • Man in pool, women watches from afar, car comes flying through air and crashes into pool. • www.subservientchicken.com – 328M hits for BK in 1st 4 months (Crispin, Porter, Bogusky) • Viral or buzz advertising

  20. Sports Illustrated MagazineDigital platforms wsj 06 • Magazine model for new millenium • Verizon V Cast phone broadcasts Rick Reilly’s weekly video segment, Riffs of Reilly • I Pod: video from 2006 swimsuit edition sold as a podcast • Download of edition, photo shoot outtakes & other content for $6 • Web: Internet frame-grad from SI.com • Shock magazine: • Digital subscriptions by email for $15/yr.

  21. Digital Formats • TV Guide: 60 blogs from staffers • Runner’s World: podcasts • Adidas sponsored free training podcasts for NY & Boston Marathon • Car and Driver: engine sounds as ring tones from cars such as Ferrari • Hearst: unit focused on podcasts, video, blogging & mobile content • Time’s Office Pirates: web only publication • Conde Nast: Epi to Go sends food lists to cellphones from Bon Appetit & Gourmet • MaximToGo.com: sexy women for cellphones & rude ring tones (burbs…) for $2 up • Give print advertisers “added value” promo online • Vogue puts up ShopVogue.com 3 times/yr.

  22. Media Scheduling • Setting the timing and sequence for a series of advertisements. • A variety of factors influence this decision • Sales patterns • Repurchase cycles • Competitors’ activities

  23. Alloy & Media Scheduling • Alloy is a media, direct marketing and marketing services company focusing on Generation Y. Their media scheduling integrates direct mail catalogs, print media, websites, on-campus marketing programs, and promotional events.

  24. Measure the Effectiveness of Media Schedule Plans • Reachrefers to the number of different people or households exposed to an advertisement at least once during a certain time period. • Frequencyrefers to the number of times an individual person is exposed to an advertisement during a certain time period. • By multiplying reach times frequency, advertisers quantitatively describe the total weight of a media effort, which is called the campaign’s gross rating point.

  25. HeadOn ‘07 • Sales up 234% • Spots annoy viewers • www.youtube.com/watch?v=Is3icfcbmbs • Among worst commercials • Annoying, repetitive, obnoxious -- and effective.

  26. Best Ads of ‘06 • Low –key, anti-advertising approach (non-typical Madison Ave.) • Merge advertising & entertainment • Monkey business viral ad, Careerbuilder.com • Cramer-Krasselt • Consumers build video email with a chimp & record custom voice greeting via telephone • Site traffic up 25% • Smirnoff’s new malt iced tea by Diageo PLC • 2-min. video seen by over 2 M people on YouTube mentioning tea only in passing

  27. Best Ads of ‘06 • Apple by Omnicom • Hip (“Accepted” actor) Justin Long debates Apple’s features with nerd (Daily Show commentator John Hodgman) • Competitive ads to a new height • KFC by Interpublic Group • Circumvent video recorders • One frame with secret code “Buffalo” used for coupon for free “Buffalo Snacker” sandwich • 100,000 redeemed, 40% traffic increase

  28. Sales Promotion • Marketing activities other than personal selling, advertising, and publicity. • Accounts for double the promotional dollar outlays of advertising. • Originally intended as short-term incentives aimed at producing immediate consumer buying responses. • Traditionally, these techniques were viewed as supplements to other elements of the firm’s promotional mix. • Today,however, marketers recognize them as an integral part of many marketing plans. • Shifted from short-term to long-term goals.

  29. Principal Methods of Sales Promotion Two major categories: • Consumer-oriented promotions take the form of coupons and refunds, samples, contests and sweepstakes, and specialty advertising. • Trade promotions include trade allowances, point-of-purchase advertising, trade shows, and dealer incentives, contests, and training programs.

  30. Sampling as a Promotional Tool • There are many companies that are taking advantage of sampling to promote their products. • Many of those same companies have found the internet to be an effective tool to market their products through sampling. • The StartSampling Web Site is just one place marketers can use to provide samples and gather information on the market.

  31. Assessing Promotional Effectiveness • Pretestingis the assessment of an ad’s effectiveness before it is actually used. • Includes conviction tests and blind product tests. • Posttesting is the assessment of the ad’s effectiveness after it has been used. • Include readership test, unaided recall tests, inquiry tests, and split runs.

  32. Advertising Ethics Puffery and Deception • Puffery refers to exaggerated claim of a product’s superiority or the use of subjective or vague statements that many not be literally true.

  33. UCC • The Uniform Commercial Code standardizes sales and business practices throughout the U.S. It makes a distinction between puffery and any specific or quantifiable statement about product quality or performance that constitutes an “express warranty.”

  34. Select Top TV Commercials since 1980http://www.usatoday.com/money/top25-ads.htm Wendy’s: Where’s the Beef? Life Alert: I’ve Fallen, and I Can’t Get Up! Energizer Bunny Got Milk?

  35. California Raisin Advisory Board: Heard it Through the Grapevine Chevy trucks: Like a Rock Playtex Model Taster’sChoice Soap Opera

  36. Pepsi: Michael Jackson on Fire Budweiser: Croaking Frogs This is Your Brain on Drugs Federal government: Crash Test Dummies

  37. Pets.com: Because Pets Can’t Drive New Coke: Max Headroom

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