1. Lamb, Hair, McDaniel CHAPTER 17 Advertising and Public Relations 2010-2011

2. LO 1 Discuss the effects of advertising on market share and consumers LO 2 Identify the major types of advertising LO 3 Discuss the creative decisions in developing an advertising campaign LO 4 Describe media evaluation and selection techniques LO 5 Discuss the role of public relations in the promotional mix Learning Outcomes

3. The Effects of Advertising Discuss the effects of advertising on market share and consumers LO 1

7. REVIEW LEARNING OUTCOME ____ affect how consumers rank brand attributes ____ reinforce positive attitude ____ change negative attitude to positive Effects of Advertising Building sales/share Maintaining sales/share Advertising can:    LO 1 Advertising response function Return on advertising expense (in sales or market share) Money spent

8. Major Types of Advertising Identify the major types of advertising LO 2

9. Major Types of Advertising LO 2 Institutional Advertising Enhances a company’s image rather than promotes a particular product. Product Advertising Touts the benefits of a specific good or service.

10. Major Types of Advertising LO 2 Corporate identity Pioneering Competitive Comparative Product Advertising Institutional Advertising Advocacy advertising

12. REVIEW LEARNING OUTCOME The Major Types of Advertising LO 2

13. Creative Decisions in Advertising Discuss the creative decisions in developing an advertising campaign LO 3

14. Creative Decisions in Advertising A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Advertising Campaign LO 3

15. Creative Decisions in Advertising LO 3 Determine the advertising objectives Make creative decisions Make media decisions Evaluate the campaign

16. Setting Objectives: The DAGMAR Approach LO 3 Define target audience Define desired percentage change Define the time frame for change

17. Creative Decisions LO 3 Develop and evaluate advertising appeals Execute the message Evaluate the campaign’s effectiveness Identify product benefits

19. Identify Product Benefits “ So?” LO 3 Attribute Benefit “ Powerade’s new line has been reformulated to combine the scientific benefits of sports drinks with B vitamins and to speed up energy metabolism.” “ So, you’ll satisfy your thirst with a great-tasting drink that will power you throughout the day.”

20. Advertising Appeals LO 3 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

21. Unique Selling Proposition A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign. Unique Selling Proposition LO 3

22. Executing the Message LO 3 Mood or Image Musical Demon- stration Scientific Real/ Animated Product Symbols Fantasy Lifestyle Slice-of-Life Humorous Spokes-person/ Testimonial

23. REVIEW LEARNING OUTCOME Creative Decisions for Ad Campaign Set advertising objectives LO 3 Identify benefits Develop appeal Execute message Evaluate campaign results Evaluating results helps marketers adjust objectives for future campaigns

24. Media Decisions in Advertising Describe media evaluation and selection techniques LO 4

25. Media Decisions in Advertising Monitored Media Unmonitored Media LO 4 Newspapers Magazines Yellow Pages Internet Radio Television Outdoor Media Direct Mail Trade Exhibits Cooperative Advertising Brochures Coupons Catalogs Special Events

26. Major Advertising Media LO 4 Newspapers Magazines Radio Television Outdoor Media Yellow Pages Internet

28. Cooperative Advertising Cooperative Advertising LO 4 An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand.

39. Alternative Media LO 4 Ads in Movies Interactive Kiosks Computer Screen Savers Shopping Carts DVDs Advertainments Cell Phone Ads Subway Tunnel Ads Floor Ads Video Game Ads

41. Media Scheduling Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks. Advertising combines continuous scheduling with flighting. Advertising is run only when the product is likely to be used. LO 4

42. REVIEW LEARNING OUTCOME Media Evaluation and Selection Considerations: LO 4 Scheduling: continuous flighted pulsing seasonal Winter Spring Summer Fall Type: Newspaper Magazine Radio Television Outdoor Internet Alternative Mix How much of each? Cost per contact How much per person? Reach How many people? Frequency How often? Audience selectivity How targeted is the audience?

43. Public Relations Discuss the role of public relations in the promotional mix LO 5

45. Functions of Public Relations LO 5 Press relations Product publicity Corporate communication Public affairs Lobbying Employee and investor relations Crisis management

46. Public Relations Tools LO 5 Product placement Consumer education Event sponsorship Issue sponsorship Internet Web sites New product publicity

47. Consumer Education Sites consumer.gov/idtheft Identity theft privacyrights.org Consumer privacy rights and responsibilities annualcreditreport.com One free credit report/consumer each year consumeraction.gov Broad range of consumer education topics consumerworld.org Latest consumer news consumerreports.org/main/home.jsp Unbiased product information consumer.gov Directs consumers to fed gov’t sites pueblo.gsa.gov Brochures and pamphlets ftc.gov/ftc/consumer.htm Unfair and deceptive business practices fcc.gov Radio, television, satellite, and telephone motorist.org Lists car repair shops meeting set standards recall.gov Safety and product recall information cpsc.gov Safety, toys, nursery equipment, home appliances, furniture, computers, fireworks nhtsa.gov Defects in automobiles, crash test ratings, safety recalls, air bags and child safety seats fda.gov Food safety or food products, prescription or over the counter drugs, or medical devices

48. Managing Unfavorable Publicity Crisis Management LO 5 A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.

49. REVIEW LEARNING OUTCOME The Role of Public Relations LO 5