Chapter 17
Advertising & PR
Objectives of Advertising
to develop initial demand
INFORM
REMIND
PERSUADE
increase demand
for an existing product
to reinforce previous promotions.
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 Response Function
‘Advertising Response’ Function
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!!!!!
Major Types of Advertising
Institutional
…………..
Advertising
Enhance
Corporation’s
……………… identity
Advocacy
………………
advertising
Pioneering
Product
……………..
Advertising
Competitive
Comparative
What kind?
What kind?
What kind?
2004
2005
2007 eu
2009
Types of Ads
 Product Ads – promote a specific item
 Pioneering: inform/build primary demand for item (intro
stage; net phone, and what else??)
Types of Ads
 Comparative ads



Specific brand comparison of a specific attribute (Pain relievers and
Caffeine)
The Cola Wars! The Beer Wars! The cereal wars! The detergent wars!
Research must support (Listerine and plaque)
vs.
Any differences?
Competitive
(brand) Ads
-Later in PLC
-Selective
demand
-Build brand
recall
-Create affect
1.6
Advertising Campaign
A series of related
advertisements focusing
on a common theme, slogan,
and set of advertising
appeals.
Steps in Creating an
Advertising Campaign
Determine the
advertising objectives.
Make creative decisions.
Make media decisions.
Evaluate the campaign.
How do dirty boys get clean?
Problem
Sales plateau. 53% of the target (1834 year old guys) still switched
between bars and shower gel, and 33%
stuck entirely with their old-fashioned,
non-Axe (and lowmargin)bar soap.
Objective:
To increase Axe Shower
Gel occasions by 4%
and sales by 13%.
Creative Decisions
Identify
Product Benefits
Components
of
Creative
Decisions
Develop and Evaluate
Advertising Appeals
Execute
the Message
Evaluate the
Campaign’s Effectiveness
Creative decisions
Aha! moment (creative idea)
Sell more Axe Shower Gel by creating a manly shower tool (why the leap?)
Guys wanted:
-Something tough to clean them but…not that tough
-Something versatile as some parts are sensitive
-Something controllable ( to match the level of scrub with their different needs)
-‘because girls notice everything, from head to toe’
-Product benefits? Rough and Gentle scrubbing!!
Common Advertising Appeals
Value
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
What appeal?
Executing the Message
Scientific
Slice-of-Life
Musical
Lifestyle
Spokesperson/
Testimonial
Demonstration
Mood or
Image
Fantasy
Real/
Animated
Product
Symbols
Humorous
What kind of execution?
 http://www.youtube.com/watch?v=zu_EKCrjTqg
Media Selection Considerations
Cost per Contact
Factors
Influencing
Reach: portion of audience
we want to reach
Media Mix
Decisions
What media?
Frequency: how often?
Audience Selectivity
Media Scheduling
Continuous Media Schedule
Flighted Media Schedule
Pulsing Media Schedule
Types of
Media Schedules
Seasonal Media Schedule
Make media decisions
Plus PR
Communication in Ads
 Effectiveness – very difficult to measure
 Testing improves performance (Dr. Pepper)
 Recall of ads may be poor (Infiniti)
Results:
Plus: 630,000+ YouTube spot views to date and over 500
comments.
• 101 product reviews on Amazon.com, with a 4 star rating
average.
• 2,839 Facebook requests for a free Detailer and 63,786
Detailer Gifts given.
• “Axe Detailer” searches were as popular as (and sometimes
more) “Axe Effect” searches –
traditionally our biggest hit
Public Relations
The Role of
Public Relations
Evaluates public
attitudes
Executes programs to
gain public acceptance
Identifies issues of
public concern
Can you imagine Axe PR?
Functions of Public Relations
Press Relations
Product Publicity
Corporate Communications
Lobbying
News
Release
Feature
Article
Product Placement
 Product/Brand Placement
 Advertainment
 www.bmwfilms.com
PR vs Publicity