Advertising and Public RelationsLearning ObjectivesBritish AirwaysTotal US Advertising – 2004Advertising DefinedWorld's Top Five Advertising AgenciesClassification of AdvertisingSlide 8Slide 9Slide 10Slide 11Slide 12Hierarchy of EffectsInfluences on Ad ProcessingAdvertising Development and EvaluationMessage Strategy AlternativesSelecting and Scheduling MediaImportant Research FindingsEthical and Legal IssuesPublic RelationsMarketing Public RelationsSummaryC H A P T E RC H A P T E R© 2007 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinAdvertising andPublic RelationsAdvertising andPublic Relations1717-2© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdLearning ObjectivesLearning ObjectivesLearning ObjectivesLearning ObjectivesAfter studying this chapter, you should be able to:Understand the characteristics, functions, and types of advertising.Realize how people process advertising information and how it affects buyer behavior.Discuss approaches to developing advertising campaigns.Describe different advertising objectives and the message strategies used to achieve them. Understand the decisions involved in selecting media and scheduling advertising.Explain how marketers assess advertising effectiveness.Appreciate the roles of public relations and publicity in marketing.17-3© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdBritish AirwaysBritish AirwaysBritish AirwaysBritish AirwaysBritish Airways has used its advertising in a variety of efforts. For example, the company’s “Future and Shape” strategy includes a marketing blitz to combat its damaging reputation as an expensive airline. BA, which has seen its market share eroded by budget carriers, invests heavily in tactical advertising to promote competitive fares to Europe. Recent plans also include heavy use of public relations to introduce its lower fares and to fight against budget airlines such as easyJet.17-4© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdTotal US Advertising – 2004 Total US Advertising – 2004 Total US Advertising – 2004 Total US Advertising – 2004 Network TV Newspapers Spot TVMagazines Cable TV networksSyndicated TVNational newspapers National spot radioOutdoorInternetMediumMediumExpendituresExpenditures($ million)($ million)$ 22,50024,60017,30021,80014,200 3,9003,3002,6003,2007,40017-5© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdAdvertising DefinedAdvertising DefinedAdvertising DefinedAdvertising DefinedAdvertisingAdvertisingA marketing communications element that is persuasive, nonpersonal, paid for by an identified sponsor, and disseminated through mass channels of communication to promote the adoption of goods, services, persons, or ideas.17-6© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdWorld's Top Five Advertising AgenciesWorld's Top Five Advertising AgenciesWorld's Top Five Advertising AgenciesWorld's Top Five Advertising AgenciesGlobal ExpendituresGlobal ExpendituresClose to $300 BillionClose to $300 Billion17-7© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingGeographicGeographicAreaAreaMediumMediumPurposePurposeAdvertising can be classified by target audience, geographic area, medium, and purpose.TargetTargetAudienceAudience17-8© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingTargetTargetAudienceAudienceGeographicGeographicAreaAreaMediumMediumPurposePurposeConsumer advertising: Aimed at people who buy the product for their own or someone else’s personal use.Business advertising: Aimed at people who buy or specify goods and services for use in business: Industrial Trade Professional Agricultural (farm)17-9© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdTargetTargetAudienceAudienceClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingMediumMediumPurposePurposeGeographicGeographicAreaAreaLocal (retail) advertising: Advertising by businesses whose customers come from only one city or local trading area.Regional advertising: Advertising for products sold in one area or region, but not the whole country.National advertising: Advertising aimed at customers in several regions of the country.International advertising: Advertising directed at foreign markets.17-10© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdMediumMediumClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingGeographicGeographicAreaAreaPurposePurposePrint advertising: Newspaper, magazine.Broadcast (electronic) advertising: Radio, TV.Out-of-home advertising: Outdoor, transit.Direct-mail advertising: Advertising sent through the mail.TargetTargetAudienceAudience17-11© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingGeographicGeographicAreaAreaMediumMediumTargetTargetAudienceAudiencePurposePurposeProduct advertising: Intended to promote goods and services.Nonproduct (corporate or institutional) advertising: Intended to promote firm’s mission or philosophy rather than a product.Commercial advertising: Intended to promote goods, services, or ideas with the expectancy of making a profit.17-12© 2007 The McGraw-Hill Companies, Inc. All rights reserved. Bearden Marketing 5th EdClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingClassification of AdvertisingGeographicGeographicAreaAreaMediumMediumTargetTargetAudienceAudiencePurposePurposeNoncommercial advertising: Sponsored by or for a charitable institution, civic group, or religious or political organization.Action advertising: Intended to bring about immediate action on the part of the reader.Awareness advertising: Intended to build the image of a product or familiarity with the product’s name and package.17-13© 2007 The