17
Advertising and Public
Relations
Dr. Close
"Advertising is salesmanship mass
produced. No one would bother to use
advertising if he could talk to all his
prospects face-to-face. But he can't."
Morris Hite
Advertising Evolution& Effects
Ad expenses have risen over the past decade
(mature mkt). Ex: Arm & Hammer
– U.S. spends more on ads than any other country
– GM, P&G, and Time Warner each spend approx.
$10 Million a DAY on U.S advertising!!!!!
Types of Ads
• Institutional Advertising
• Advocacy ads (a form of institutional ads):
promote goodwill, organization/industry
(AT&T Supports The Cyclists of the Tour de GA
race)
Sunkist &
Subway/Jared
Support Healthy Lifestlyes…
Bud & Advocacy Advertising
Types of Ads
• Product Ads – promote a specific item
(bamboo steamer)
– Pioneering: inform/build primary demand for
item (intro stage; net phone, and what else??)
Types of Ads
• Type of competitive ad: comparative ads
– Specific brand comparison of a specific attribute (Pain
relievers and Caffeine)
– The Cola Wars! The Beer Wars! (Less carbs than Bud!)
– Research must support (Listerine and plaque)
vs.
Any differences?
Competitive
Ads
(Type of Product
Ad)
-Later in PLC
-Selective
demand
-Build brand
recall
-Create affect
1.6
Mockvertising
Priceless Brand Recall
Ad Appeals
Affect
• Feel good ads
• Humor ads
• Sexual-appeal ads
•Love or Romance
•Admiration
•Courage
•Fun
•Pleasure
•Environmentally
Consciousness
Got Milk?...
What Appeals Are Used?
What Appeals Should Sell Milk?
Not-So Warm
(yet effective) Appeals
Scare the consumer
into action
• Fear-appeal ads
Change behavior by
inducing anxiety
• Anxiety ads
Ad Objectives and Execution
Persuade
• Reason-why ads
• Hard-sell ads
• Comparison ads
• Information-only ads
• Testimonial ads
• Demonstration ads
• Advertorials
• Infomercials
Ad Objectives and Execution
Transform consumption
experiences
Situate the brand
socially
Define the brand image
• Transformational ads
• Slice-of-life ads
• Product-brand placement/
Short Internet Films
• Image ads
Ad Objectives and Execution
Promote brand recall
Link a key attribute to
the brand name
• Repetition ads
• Slogan and jingle ads
• Unique selling
proposition (USP) ads
"Great designers seldom make
great advertising men, because
they get overcome by the beauty
of the picture - and forget that
merchandise must be sold." –
James Randolph Adams
Ad Issues
• Ad allowances: producer discount for
retailer ads (ex: Wal-Mart circular)
• Cooperative ads: firms at different levels
share costs (Franchises and what else??)
• Horizontal cooperation:
agreements at same
level
Choosing A Medium (1)
• 4 steps (interactive decisions):
– Set Objectives: most specific; quantify time
– Match media with market
• Must find a way to reach market
(Letterman or Oprah?; Maxim or Vogue?;
MySpace or Facebook?)
• Problem with network/mainstream advertising: you
pay for the whole audience
Choosing A Medium (2)
• 4 steps (cont…)
– Budgeting (most buys may use budget; Yellow
Pages; local paper)
– Selecting media: modern media allows targeting
– Do you know the demographic/psychographic
profile of readers of each of these vehicles?:
Where Would you Run this Honda
Ad? Why?
Communication in Ads
• Effectiveness – very difficult to measure
– Testing improves performance (Dr. Pepper)
– Recall of ads may be poor (Infiniti)
Ethics in Ads (1)
• FTC Federal Trade Commission
– Regulates deceptive ads
• Wrong impression (Office Depot “low cost” PC:
$269 but mandatory 3 year ‘Net made it over
$1000)
• May be true but still mislead: Kraft singles
Ethics in Ads (2)
• FTC Federal Trade Commission (cont…)
– Regulates unfair ads = may not be deceptive
BUT>>>
• “Cause injury” (kids, elderly, omit needed info…)
• Unpopular with business (vague) – narrower; injury
not avoidable
• Walgreen’s: Advil as anti-inflammatory
Ethics in Ads (3)
• FTC Federal Trade Commission (cont…)
– Require support (Listerine)
– Can order corrective ads (Listerine & Doan’s
pills)
– Some feel FTC is “big brother” (hair dryers)
Summary
•
•
•
•
3 promotions goals
Promotion methods
Ethics and Ads/Promotions
Any questions??