Chapter Fifteen

Advertising and Public Relations

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Chapter 15 - slide 1
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 The Promotional Mix

Elements of
Promotional Mix

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Chapter 15 - slide 2
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 Advertising and Public
Relations
Topic Outline
Advertising
– Objectives
– Budget
– Strategy
– Effectives

Public Relations
– Role and impact
– Tools
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 Advertising

Defined as paid, non-personal

presentation and promotion of
ideas, goods, or services by an
identified sponsor
– Space or time for advertising must be
bought
– Transmit message to large groups of
individuals
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Chapter 15 - slide 4
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 Advertising
Mass media
– TV
– Radio
– Magazines/
Newspaper
Magazine
– Billboards Billboard

Radio

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 Advertising

Developing and Advertising Programs

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 Advertising
Setting Advertising Objectives
An advertising objective is a specific communication
task to be accomplished with a specific target
audience during a specific time

Objectives are classified

by primary purpose
• Inform
• Persuade
• Remind

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Chapter 15 - slide 7
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 Advertising
Setting Advertising Objectives
Informative advertising is used
when introducing a new product
category; the objective is to
build primary demand

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Chapter 15 - slide 8
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 Advertising
Setting Advertising Objectives

Comparative
advertising
directly or
indirectly
compares
the brand
with one or
more other
brands

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 Advertising
Setting Advertising Objectives
Persuasive advertising is important with increased competition to
build selective demand. It aims to create liking for a product

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Chapter 15 - slide 10
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 Advertising
Setting Advertising Objectives

Reminder advertising is important with

mature products to help maintain
customer relationships and keep
customers thinking about the product.
Ex: If “Snickers”, the famous and long
known chocolate-peanut candy bar,
launches an advertising campaign to re-
emphasize its full load of peanuts and
caramel, to remind us that it’s still here
in the midst of plenty of competing
candy bars.
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Chapter 15 - slide 11
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 Table 15.1
Possible Advertising Objectives

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Chapter 15 - slide 12
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 Advertising
Setting the Advertising Budget

Factors to consider when setting the budget

• Product life-cycle stage
• Market share

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Chapter 15 - slide 13
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 Advertising
Setting the Advertising Budget

Product life-cycle stage

• New products require larger budgets
• Mature brands require lower budgets
Market share
• Building or taking market share requires larger
budgets
• Markets with heavy competition or high
advertising clutter require larger budgets
• Undifferentiated brands require larger budgets
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Chapter 15 - slide 14
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 Advertising
Developing Advertising Strategy

Advertising strategy is the strategy by

which the company accomplishes its
advertising objectives and consists of:
• Creating advertising messages
• Selecting advertising media

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Chapter 15 - slide 15
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 Advertising
Creating the Advertising Message

Advertisements
need to break
through the
clutter:
• Gain attention
• Communicate
well

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Chapter 15 - slide 16
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 Advertising
Creating the Advertising Message

Advertisements need to be better planned,

more imaginative, more entertaining, and more
rewarding to consumers

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Chapter 15 - slide 17
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Chapter 15 - slide 18
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Chapter 15 - slide 19
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 Advertising
Creating the Advertising Message

Message strategy

Creative concept

Message execution

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Chapter 15 - slide 20
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 Advertising
Creating the Advertising Message
Message strategy is the general message that will
be communicated to consumers
• Identifies consumer benefits

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Chapter 15 - slide 21
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 Advertising
Creating the Advertising Message

Creative concept is the idea

that will bring the message
strategy to life and guide
specific appeals to be used in
an advertising campaign
Characteristics of the appeals
include:
• Meaningful
• Believable
• Distinctive
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Chapter 15 - slide 22
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 Advertising
Creating the Advertising Message
• Message execution is when the advertiser
turns the big idea into an actual ad
execution that will capture the target
market’s attention and interest.
• The creative team must find the best
approach, style, tone, words, and format
for executing the message.

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Chapter 15 - slide 23
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 Advertising
Creating the Advertising Message
Message execution

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Chapter 15 - slide 24
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 Advertising
Creating the Advertising Message

Slice of life Lifestyle Fantasy

Mood or Personality
Musical
image symbol

Testimonial
Technical Scientific
or
expertise evidence
endorsement
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Chapter 15 - slide 25
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 Advertising
Creating the Advertising Message

Message execution also includes:

• Tone
– Positive or negative
• Attention-getting words
• Format
– Illustration
– Headline
– Copy

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Chapter 15 - slide 26
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 Advertising
Creating the Advertising Message
Consumer Generated Messages
• YouTube videos
• Brand Web site contests
• Positives
– Low expense
– New creative ideas
– Fresh perspective on brand
– Boost consumer involvement

https://www.youtube.com/watch?v=Y-
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 Advertising
Selecting Advertising Media

Major steps include:

• Deciding on reach-frequency-impact
• Selecting media vehicles
• Deciding on media timing

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Chapter 15 - slide 28
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 Advertising
Selecting Advertising Media

Reach is a measure of the percentage of people in

the target market who are exposed to the ad
campaign during a given period of time
Frequency is a measure of how many times the
average person in the target market is exposed
to the message
Impact is the qualitative value of a message
exposure through a given medium

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Chapter 15 - slide 29
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 Advertising
Selecting Advertising Media

Selecting media vehicles involves decisions presenting

the media effectively and efficiently to the target
customer and must consider the message’s:
• Impact
• Effectiveness
• Cost

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 Advertising
Selecting Advertising Media
Narrowcasting Versus Shotgun Approaches

Narrowcasting focuses
the message on selected
market segments
• Lowers cost
• Targets more effectively
• Engages customers
better

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Chapter 15 - slide 31
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 Advertising

Narrowcasting

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 Advertising
Selecting Advertising Media

When deciding on media

timing, the planner must
consider:
• Seasonality
• Pattern of the advertising
– Continuity—scheduling within
a given period
– Pulsing—scheduling unevenly
within a given period
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Chapter 15 - slide 33
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 Continuous Schedule

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Chapter 15
34- slide 34
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 Pulsing Schedule

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Chapter 15
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 Advertising
Evaluating the Effectiveness and Return on
Advertising Investment

Communication effects indicate whether the ad and

media are communicating the ad message well
and should be tested before or after the ad runs
Sales and profit effects compare past sales and
profits with past expenditures or through
experiments

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Chapter 15 - slide 36
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 Advertising
Developing and Advertising Programs
Other Advertising Considerations

• Organizing for
advertising
– Agency vs. in-house
• International
advertising decisions
– Standardization

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Chapter 15 - slide 37
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 Public Relations

Public relations involves building good

relations with the company’s various
publics by obtaining favorable publicity,
building up a good corporate image, and
handling or heading off unfavorable
rumors, stories, and events
Public relations is used to promote product,
people, ideas, and activities

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Chapter 15 - slide 38
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 Public Relations
• Public relations department functions
include:
• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development
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Chapter 15 - slide 39
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 Public Relations

Press relations or press agency involves the

creation and placing of newsworthy
information to attract attention to a
person, product, or service
Product publicity involves publicizing specific
products
Public affairs involves building and
maintaining national or local community
relations

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Chapter 15 - slide 40
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 Public Relations
Lobbying involves building and maintaining
relations with legislators and government
officials to influence legislation and
regulation
Investor relations involves maintaining
relationships with shareholders and
others in the financial community
Development involves public relations with
donors or members of nonprofit
organizations to gain financial or
volunteer support
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Chapter 15 - slide 41
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 Public Relations
The Role and Impact of Public Relations

• Lower cost than advertising

• Stronger impact on public awareness than
advertising

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Chapter 15 - slide 42
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 Public Relations
Major Public Relations Tools

Written
News Speeches Special events
materials

Corporate
Audiovisual Public service
identity Buzz marketing
materials activities
materials

Social Mobile tour Internet

networking marketing

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 All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

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