Chapter 15 Advertising and Public
Relations
Advertising
• U.S. advertising spending exceeds $215
billion per year
• Industry employs only 272,000
• Ad budgets of some firms exceed over $2
billion per year
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 and the Consumer
 Average U.S. citizen is exposed to
hundreds of ads each day.
 Advertising may change a
consumer’s attitude toward a
product.
 Advertising can affect consumer
ranking of brand attributes.
Major Types of Advertising
Institutional
Advertising
Enhance
corporation’s identify
Advocacy
advertising
Pioneering
Product
Advertising
Competitive
Comparative
Product Advertising
Pioneering
Competitive
Comparative
• Stimulates primary demand for
new product or category
• Influence demand for brand in the
growth phase of the PLC.
• Often uses emotional appeal.
• Compares two or more competing
brands’ product attributes.
• Used if growth is sluggish, or if
competition is strong.
Steps in Creating an
Advertising Campaign
Determine the
advertising objectives.
Make creative decisions.
Make media decisions.
Evaluate the campaign.
Creative Decisions
Identify
Product Benefits
Components
of
Creative
Decisions
Develop and Evaluate
Advertising Appeals
Execute
the Message
Evaluate the
Campaign’s Effectiveness
Identify Product Benefits
• “Sell the Sizzle, not the Steak”
• Sell product’s benefits, not its attributes
• A benefit should answer
“What’s in it for me?”
• Ask “So?” to determine
if it is a benefit
Common Advertising Appeals
Profit
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
Admiration
Reason for use of celebrity spokespeople
Convenience
Used for fast foods and microwave foods
Fun and pleasure
Key to advertising vacations, beer, parks
Vanity and egotism
Environmental
Consciousness
Used for expensive or conspicuous items
Centers around environmental protection
Executing the Message
Scientific
Slice-of-Life
Musical
Demonstration
Mood or
Image
Lifestyle
Common
Executional
Styles
Real/
Animated
Product
Symbols
Spokesperson/
Testimonial
Fantasy
Humorous
Media Types
Newspapers
Magazines
Radio
Television
Major Types
of
Advertising
Media
Outdoor
Internet
Alternative Media
Advertising Spending for 1999
Magazine
Yellow Pages
Internet
Radio
Television
Outdoor
Newspaper
Newspapers
Advantages
 Year-round readership
 Geographic selectivity
 Immediacy
 High individual market
coverage
 Short lead time
Disadvantages
 Limited demographic
selectivity
 Little color
 May be expensive
 Low pass-along rate
 Clutter
 Mass market medium
Magazines
Advantages
Disadvantages
 Good reproduction
 Higher cost per contact
 Demographic
selectivity
 Long-term advertiser
commitments
 Regional/local
selectivity
 Slow audience build-up
 Long advertising life
 Limited demonstration
capabilities
 High pass-along rate
 Lack of urgency
 Long lead time
Radio
Advantages
 Selectivity and
audience segmentation
 Immediate and portable
Disadvantages
 No visual treatment
 Short advertising life
 Geographic flexibility
 High frequency to
generate retention
 Entertainment
carryover
 Commercial clutter
 Short-term ad
commitments
 Background
distractions
Television
Advantages
 Wide diverse audience
 Low cost per thousand
 Creative and
demonstrative
 Immediacy of messages
 Entertainment carryover
 Demographic selectivity
with cable
Disadvantages
 Short life of message
 Expensive with high
campaign cost
 Little demographic
selectivity with network
 Long-term advertiser
commitments
 Long lead times
 Clutter
Outdoor Media
Advantages
 High exposure
frequency
Disadvantages
 Short message
 Moderate cost
 Lack of demographic
selectivity
 Flexibility
 High “noise” level
 Geographic selectivity
 Broad, diverse market
Internet and World Wide Web
Advantages
 Fast growing
 Ability to reach narrow
target audience
 Short lead time
 Moderate cost
Disadvantages
 Difficult to measure
ad effectiveness and
ROI
 Ad exposure relies on
“click through”
 Not all consumers
have access to
internet
Alternative Media
Fax Machines
Video Shopping Carts
Examples of
Alternative Media
Computer
Screen Savers
Interactive Kiosks
Ads in
Movies and Videos
Media Selection Considerations
Cost per
Contact
The cost of reaching one
member of the target market.
Reach
The number of target consumers
exposed to a commercial at least
once during a time period.
Frequency
The number of times an individual
is exposed to a message during a
time period.
Audience
Selectivity
The ability of an advertising
medium to reach a precisely
defined market.
Functions of Public Relations
Press Relations
Product Publicity
Corporate Communication
Public Affairs
Lobbying
Employee and Investor Relations
Crisis Management
Public Relations Tools
New Product Publicity
Tools
Used By
PR
Professionals
Product Placement
Consumer Education
Event Sponsorship
Issue Sponsorship
Internet Web Sites
Managing Unfavorable Publicity
Crisis
Management
A coordinated effort to handle
the effects of unfavorable
publicity or of an unfavorable
event.