MARKETING Real People Real Choices Fourth Edition CHAPTER

MARKETING Real People, Real Choices Fourth Edition CHAPTER 13 Advertising and Public Relations Michael R. Solomon Greg W. Marshall Elnora W. Stuart

Chapter Objectives • Tell what advertising is and describe the major types of advertising • Describe the process of developing an advertising campaign • Explain how marketers evaluate advertising • Explain the role of public relations • Describe the steps in developing a public relations campaign • Understand direct marketing • Explain the future of m-commerce 2

It’s an Ad Ad World • Advertising is nonpersonal communication paid for by an identified sponsor using mass media to persuade, inform, and remind an audience 3

Types of Advertising • Product advertising - message focuses on a specific product • Institutional advertising - message focuses on activities, personality, or point of view of a company – advocacy advertising – public service advertisements (PSAs) 4

Who Creates Advertising? • An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time • Agencies – limited-service – full-service 5

The Body of Campaign Creation • Account management (soul) • Creative services (heart) • Research and marketing services (brains) • Media planning (legs) 6

Developing the Campaign • Identify the Target Market • Establish objectives – Message – Budget • Design Ad Campaign • Pretest Campaign • Choose Media and Schedule 7

Design the Ad • Creative strategy is the process that turns a concept into an advertisement • Creatives try to develop a “big idea” • Creatives: – art directors – copywriters – photographers 8

Advertising Appeals • Reasons Why (USP) • Comparative Advertising • Demonstration • Testimonial • • • Slice-of-Lifestyle Fear Sex Humor Slogans and Jingles 9

Name That Brand! • • Double your pleasure, double your fun Good to the last drop My bologna has a first name…. I’d like to buy the world a _____ 10

Humor 11

Step 4: Pretest What Will Be Said • Copy testing measures ad effectiveness – Concept testing – Test commercials – Finished testing 12

Step 5: Choose the Media • Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion – Where to say it – When to say it 13

Media Scheduling • Specifies the exact media to use for the campaign, when and how often the message should appear • Outlines the planner’s best estimate of which media and vehicles will be most effective in attaining campaign objectives 20

Factors Affecting Media Scheduling • • Target market profile People reached by different vehicles Advertising patterns of competitors Capability of medium to convey desired information • Compatibility of product with editorial content 21

Media Scheduling Terms_1 • Impressions – the number of people who will be exposed to a message placed in one or more media vehicles • Reach – the percentage of the target market exposed to the media vehicle • Frequency – the average number of times a person in the target group will be exposed to the vehicle 22

Media Scheduling Terms_2 • Gross Rating Points (GRPs) – reach * frequency • Cost per Thousand (CPM) – compares the relative cost effectiveness of different media vehicles that have different exposure rates; it reflects the cost to deliver a message to 1000 people 23

Media Scheduling: How Often? • Continuous – steady stream throughout year • Pulsing – varies amount of advertising based on when product is in demand (e. g. , suntan lotion) • Flighting – advertising appears in short, intense bursts alternative with periods of little to no activity 24

Evaluating Advertising • Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard – unaided recall – attitudinal measures 25

Public Relations • Attempts to influence the attitudes and perceptions of consumers, stockholders, and other stakeholders toward companies, brands, politicians, celebrities, not-for-profit organizations • Do something good, then talk about it 26

Planning a PR Campaign • Develop objectives • Execute the campaign • Evaluate the campaign 28