Chapter 17 Advertising Public Relations Advertising effects of advertising US advertising are expected to decline in difficult economic times in recent years 30 companies spent more than 1B each 850 000 people work in media advertising newspapers magazines TV radio internet media more than 100 companies spend over 300M annually advertising market share new brands with a small market share spend proportionally more for advertising and sales promotion than those with large market share beyond a certain level of spending diminishing returns set in new brands USED TO require high spending to reach min level of exposure needed to affect purchase habits effects of advertising on consumers average US citizen is exposed to hundreds of ads daily advertising may change a consumer s negative attitude toward a product or reinforce a positive attitude can affect consumer rating of a brand s attributes s h a r e i n s a e s l e x p e n s e o r m a r k e t R e t u r n o n a d v e r t i s n g i Maintaining sales share Building sales share Advertising Response Function Major Types of Advertising institutional advertising promotes a particular product corporate identity advocacy advertising enhances a company s image rather than M o n e y s p e n t M o n e y s p e n t product advertising touts the benefits of a specific good or service pioneering competitive comparative stimulates primary demand for a new product category used in the PLC introductory stage influences demand for brand in the growth phase of the PLC often uses emotional appeal compares 2 competing brands product attributes used if growth is sluggish or if competition if strong Creative Decisions in Advertising advertising campaign a series of related advertisements focusing on a common slogan and set of advertising appeals 1 Setting Objective the DAGMAR Approach theme Determine the advertising objectives a Define target audience b Define desired percentage change c Define the time frame for change 2 Creative Decisions set advertising objectives identify benefits develop appeal execute message evaluate campaign results set objectives again Identify product benefits a Make creative decisions Make media decisions i sell the sizzle not the steak ii All product s benefits not it s attributes iii The benefit should answer What s in it for me iv Ask So to determine if it is a benefit Evaluate the campaign attribute Powerade s new line has been reformed to combine the scientific benefits of sports drinks with B vitamins to speed up energy metabolism benefit So you ll satisfy your thirst with a great tasting drink that will power you throughout the day b Develop evaluate advertising Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness Product saves makes or protects money Appeals to body conscious or health seekers Used in selling cosmetics and perfumes Social embarrassment old age losing health Reason for use of celebrity spokespeople Used for fast foods and microwave foods Key to advertising vacations beer parks Used for expensive or conspicuous items Centers around environmental protection appeals Unique Selling proposition a desirable exclusive believable advertising appeal selected as the theme for a campaign c Execute the message musical scientific slice of lifestyle lifestyle spokes person testimonial fantasy humorous real animated product symbols mood or image demonstration remarkable find something in your current product modify or create it to make something desirable to your sneezers d Evaluate the campaign s effectiveness i Where they affective increase sales 3 Media Decisions in Advertising monitored media newspapers magazines yellow pages internet radio TV outdoor media unmonitored media direct mail trade exhibits cooperative advertising brochures coupons catalogs special events newspapers advantages geographic selectivity shot term advertiser commitments news value and immediacy year round readership high end coverage coop and local tie in availability short lead time disadvantages limited demographic limited color low pass along rate may be expensive magazines Radio TV advatanges good reproduction demographic selectivity regional local selectivity long advertising life high pass along rate disadvantages long term advertiser commitments slow audience build up limited demonstration capabilities lack of urgency long lead time advantages low cost immediacy of message no seasonal audience changes high portable short term advertiser commitments entertainment carryover disadvantage lower costs advantages wide diverse audience low cost per thousand creative opportunites immediacy of message entertainment carry over demographic selectivity disadvantages short life of message consumer skepticism high campaign cost outdoor media advantages repetition moderate costs flexibility geographic selectivity disadvantages short message lack of demographic selectivity high noise level Internet advantages fast growing ability to reach narrow target audience short lead time moderate cost disadvantages difficult to measure as effectiveness and ROI ad exposure erlies on click through from banner ads In App Advertising 350 000 apps in the Apple App Store 150 000 in the Android Marketplace cooperative advertising an arrangement in which the manufacturer and the retailer split the cost of advertising the manufacturer s brand major advertising media newspapers magazines radio TV outdoor media yellow pages internet alternative media shopping carts computer screen savers DVD s interactive kiosks ads in movies advertainments floor ads subway tunnel ads video game ads cell phone ads qualitive factors in Media Selection attention to the commercial and the program program liking lack of distractions other audience behaviors media scheduling continuous media schedule advertising is run steadily throughout the period flighted media schedule advertising is run heavily every other month or every 2 weeks pulsing media schedule advertising combines continuous scheduling with flighting seasonal media scheduling advertising is run only when the product is likely to be used Public Relations the element in the promotional mix that evaluates public attitudes identifies issues of public concern executes programs to gain public acceptance Functions press relations product publicity corporate communication public affairs lobbying employees investor relations crisis management a coordinated effort to