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Copyright Cengage Learning 2013
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Chapter 17: Advertising and Public Relations
Introduction to
Designed & Prepared by Laura RushB-books, Ltd.
Copyright Cengage Learning 2013
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2
Learning Outcomes
Discuss the effects of advertising on market share and consumers
Identify the major types of advertising
Discuss the creative decisions in developing an advertising campaign
Describe media evaluation and selection techniques
Discuss the role of public relations in the promotional mix
LO1
LO2
LO3
LO5
LO4
3
Advertising and Market Share
New brands with a small market share spend proportionally more for advertising and sales promotion than those with a large market share
1. Beyond a certain level of spending, diminishing returns set in.
2. New brands require higher spending to reach a minimum level of exposure needed to affect purchase habits.
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4
Major Types of Advertising
Institutional Advertising- Enhancesa company’s image rather than promotes a particular product.
Product Advertising- Touts thebenefits of a specific good or
service.
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Product Advertising
PioneeringPioneeringPioneeringPioneering Stimulates primary demand for
new product or category Used in the PLC introductory stage
CompetitiveCompetitiveCompetitiveCompetitive Influences demand for brand in the
growth phase of the PLC Often uses emotional appeal
ComparativeComparativeComparativeComparative Compares two or more competing
brands’ product attributes Used if growth is sluggish, or if
competition is strongOnline
http://www.pizzahut.comhttp://www.papajohns.com
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6
Creative Decisions in Advertising
Advertising Campaign - A series
of related advertisements
focusing on a common theme,
slogan, and set of
advertising appeals.
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Setting Objectives: The DAGMAR Approach
Define target audienceDefine target audience
Define desired percentage changeDefine desired percentage change
Define the time frame for change Define the time frame for change
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Creative Decisions
Develop and evaluateadvertising appeals
Develop and evaluateadvertising appeals
Execute the message
Execute the message
Evaluate thecampaign’s effectiveness
Evaluate thecampaign’s effectiveness
Identify product benefits
Identify product benefits
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Identify Product Benefits
Attribute
Benefit
“SoBe Life Water has reformulated five delicious, low-calorie flavors, each infused with essential vitamins and
healthy herbal ingredients.”
“SoBe Life Water is not only an enhanced water; it is a lifestyle unto itself. It
provides consumers the healthiest, most fun and refreshing products, delivering
the incredibly positive benefits of hydration.”
- So?
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Advertising AppealsProfit
Health
Love or romance
Fear
Admiration
Convenience
Fun and pleasure
Vanity and egotism
Environmental Consciousness
Product saves, makes, or protects money
Appeals to body-conscious or health seekers
Used in selling cosmetics and perfumes
Social embarrassment, old age, losing health
Reason for use of celebrity spokespeople
Used for fast foods and microwave foods
Key to advertising vacations, beer, parks
Used for expensive or conspicuous items
Centers around environmental protection
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Unique Selling Proposition
A desirable, exclusive, and
believable advertising appeal
selected as the theme
for a campaign.
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Media Decisions in Advertising
NewspapersNewspapers
MagazinesMagazines
Yellow PagesYellow Pages
InternetInternet
RadioRadio
TelevisionTelevision
Outdoor MediaOutdoor Media
Direct MailDirect Mail
Trade ExhibitsTrade Exhibits
Cooperative AdvertisingCooperative Advertising
BrochuresBrochures
CouponsCoupons
CatalogsCatalogs
Special EventsSpecial Events
Monitored MediaMonitored Media Unmonitored MediaUnmonitored Media
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Major Advertising Media
NewspapersNewspapers
MagazinesMagazines
RadioRadio
TelevisionTelevision
Outdoor MediaOutdoor Media
Yellow PagesYellow Pages
InternetInternet
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Cooperative Advertising
An arrangement in which themanufacturer and the retailersplit the costs of advertising
the manufacturer’s brand.
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Media Selection
• Media Mix – Combination of media to be used for a promotional campaign
• Cost per contact – The cost of reaching one member of the target market
• Reach – number of target consumers exposed to a commercial at least once during a specific period, usually four weeks
• Frequency – number of times an individual is exposed to a given message during a specific period
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Qualitative Factors in Media Selection
• Attention to the commercial and the program
• Involvement
• Program liking
• Lack of distractions
• Other audience behaviorsCopyright Cengage Learning
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Media Scheduling
ContinuousMedia Schedule
Flighted Media Schedule
PulsingMedia
Schedule
SeasonalMedia Schedule
Advertising is run steadily throughout the period.
Advertising is run heavily every other month or every two weeks.
Advertising combines continuous scheduling with
flighting.
Advertising is run only when the product is likely to be used.
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18
Public Relations
The elements in the promotional mix that:
-evaluate public attitudes,-identify issues of public concern,
-execute programs to gain public acceptance.
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