Chapter 12: Advertising and PR

1. Advertising: the image of marketing

- Product placement (product plugs in films) are turning up more often because people
watch less ads on TV (86% skip the adds on tv)
- Advertising: non personal communication paid for by an identified sponsor using mass
media to persuade and inform audience: can be fun, glamorous, annoying and
informative let customers know what they are selling and why people should buy it
today.
- Advertising is a potent force that creates desire for products by transporting us to
imaginary worlds where people are happy, beautiful, rich
- Repeat the message as often as it deems
Rely on public relations event in addition to traditional advertising

1. Types of advertising
marketers have to decide which type of ad will work best given their organizational and
marketing goals
Product advertising:
=Message focuses on specific good or service; most of the advertisements we see
are product advertisements
Institutional advertising
= promotes activities, personality or point of view of an organization or company or
can be used for recruitment purposes to attract potential employees to jobs
o Advocacy advertising: state firms position on an issue to sway public
opinion
o Public service advertisement (PSAs): ads that media run free for charge;
promote non-profit organizations; e.g. discouraging drunk driving
Pro-bono basis: for free, advertising agencies usually take 1 or more public
service campaigns.
Retail and local advertising
= encourage customers to shop at specific store or use local service (informs us
about shop hurs, location and products)
Consumer generated advertising:
Generation C, consumer generated content such as that included in blogs is
building on the web. - Encourage customers to contribute to next advertising
campaign.
Putting content in the hands of consumers is risky.
Ex: Loral: You make the commercial

2. Who creates advertising?

Trend towards DIY advertising BUT most advertising is far more complicated
Advertising campaign = a coordinated, comprehensive plan that carries out
promotion objectives and results in a series of advertisements placed in media over
a period of time.
Multiple messages with all ads in the campaign having the same look and feel
Need broad range of skilled people Most of the time: outside advertising
agencies
o Limited service agency: provides one or more specialized services
o Full-service agency: provides most or all of the services needed to mount a
campaign (research, creation of ad copy and art, media selection, production)
o Campaign requires different specialists to produce:
Account management: soul of the operation develops campaign
strategy for the client, supervises day-to-day activities; primary liaison.
Make sure that the client is happy while verifying that people within the
agency are executing the desired strategy.
 Creative services: heart of the communication efforts; dream upon and
produce ads
creative directors, copywriter, art director. They are the artists who
breathe life into marketing objectives and craft messages that will interest
consumers.
Research and marketing services: brains of the campaign, they collect
and analyze information that will help account executives develop a
sensible strategy. They assist creative in getting consumers reactions to
different versions of ads and provide detail on the target group.
Media planner: legs of the campaign; determine which communication
vehicles most appropriate; recommend most effective and efficient means
for delivering the ad by deciding where, when and how often it will appear
Use integrated marketing communication (IMC): advertising is just one element of it
must work together with PR, sales promotion and direct
marketing.

2. Developing the advertising campaign

should be related to the organizations overall
communications goals
The firm (and its outside agency if it uses one) must have a
good idea of whom it wants to reach, what it will take to
appeal to this market, and where and when the message
should be placed.

o Step1: identify the target audiences

understand as much as possible about them and what turns them on and off.
Marketers/researchers often identify the target audience for an advertising campaign from
research related to a segmentation strategy: Researcher try to get inside the customers
head to understand just how to create a message to which he or she will understand and
respond to.

o Step2: establish message and budget objectives

Objectives should be consistent with the overall communications plan.
Underlying message and costs need to be related to what the marketer is trying to say
about the product and what the marketer is willing or able to spend. Objectives for both
- Setting message objectives
o Advertisement alone is quiet limited in what it achieves. It:
Inform (aim to make customer knowledgeable about the features of the
product and how to use it).
Persuade (persuade to like brand; prefer it over another one)
Remind (keep the name of the brand in front of customers).
- Setting budget objectives
o Must allocate a % of their overall communications budget depending on what
the company can afford
o Major approaches and techniques to setting overall promotional budgets, such
as percentage of sales and objective task methods (chapter 11), also set
advertising budget

o Step3: design the ads

Creative strategy: process that turns a concept into an advertisement; spark
between objective and execution the how. develop a big idea in a tangible,
attention-getting, memorable way
Advertising appeal: central idea of the ad
can be emotional with dramatic coulour or powerful images. Sexy people or
experts,
o Reasons why: a unique selling proposition (USP): effective if there is
some clear product advantage that consumers can readily identify and that is
 important to them. It gives consumers a single, clear reason why one product is
better at solving a problem. It focuses on a need and show how to satisfy it.
o Comparative advertising: explicit names one or more competitors
Best for brands that have a smaller share for those that can focus on a
specific feature that makes them superior to a major brand; risk that
consumers feel that Goliath is picking on David
o Demonstration: the ad shows a product in action to prove that it performs as
claimed (celebrity endorsement useful when consumers are unable to
identify important benefits except seeing the product in use).
o Testimonial: a celebrity, expert, or man in the street states the products
effectiveness (effective for products that need to differentiate themselves from
competitors).
o Slice of life: presents a (dramatized) scene from everyday life consumers
feel good about if they see real people buying and using them.
o Lifestyle: shows person(s) attractive to target market in appealing setting
people who buys it will attain the lifestyle
o Fear appeals: negative consequences of not using a product; e.g. deodorant,
gum, life insurance
o Sex appeals: get consumers attention; more likely to be effective when there
is a connection between product and sex (or at least romance)
o Humorous appeals: can be tricky
o Slogans: linguistic devise that is memorable; jingles: same just set slogan to
music

o Step4: pre-test what the ads will say

Pre-testing: research that goes on in the early stages of a campaign center on
gathering basic information that will help planners be sure they have accurately
defined the products market, consumers and competitors
Copy testing: measures the effectiveness of ads; process determines whether
consumers are receiving, comprehending, and responding to ad according to plan

o Step5: choose the media types and media schedule

Media planning: problem-solving process for getting a message to a target
audience in the most effective way
Aperture: First task is to find out when and where people in the target market
are most likely to be exposed to the communication (aperture: window to reach
the target market)

Need to match up the profile of the target market with specific media vehicles.

1) Where to say it: traditional media

Vehicle Pros cons
Television Creative and flexible Very expensive on absolute
Medium of Most cost-effective way to basis (too high for smaller
reach mass audience companies)
choice for
Cable and satellite TV allow Message quickly forgotten
national or unless repeated often
to reach selected groups
regional Prestigious way Audience increasingly
companies Demonstrate product in use fragmented
Entertainment and Fewer people watching national
excitement TV
High impact: sight and sound Zapping during commercials
Rising cost shorter ads
more clutter
radio Good for selectively Lack of attention
targeting an audience Difficult to buy radio time
Is heard out of home (national ads)
Personal and intimate level Not appropriate for products
Local personalities that must be seen
Low cost: producing spot and Small audience of individual
 for running it repeatedly
Short lead time modified
quickly
Sound effects imagination
to create vivid scene
newspaper Wide exposure provides
extensive market coverage
Flexible format permits the
use of color, different size
ads, and targeted editions
Ability to use detailed copy
Allows local retailers to tie in
with national advertisers
People are in the right
mental frame to process
advertisements about new
products, sales, etc.
Timeliness, i.e., short lead
time between placing ad and
having it run
magazines Audience can be narrowly
targeted by specialized
magazines
High credibility and interest
level good environment
for ads
Long life, passed to other
readers
Visual quality excellent
Detailed product information
Outdoor; out-of- Most of the population can
home media be reached at low cost
Good for supplementing
media
High frequency
Reaching all segments of the
population
Geographic flexible
stations means ads must be
placed with many different
stations and must be repeated
frequently
Most people spend not much
time reading news paper
Low among teenagers and
young adults
Short life span
Very cluttered environment
Quality of images low
Not effective in reaching specific
audience
Expensive: highest cost per
exposure
Long deadlines reduce flexibility
Several magazines to reach
majority of target market
clutter
Hard to communicate complex
messages short exposure
time
Difficult to measure
advertisements audience
Controversial, dislike in many
communities
Cannot pinpoint specific market
segments

Direct response Narrow audience High cost per exposure

Message can be timed Target lists must be constantly
Effectiveness easy to updated
measure Ads lack credibility among many
consumers
Place-based
media :
Transmit message to
captive audience
in public places such
as airports, in-store
TV, RFID

- 1) new media: Internet advertising: (gives marketers the ability to reach customers
in new and exciting ways).
o Advantages:
New ways to finely target customers
How are people responding to online message?
Can be interactive
o Specific forms:
Banners: most popular; although effectiveness remains in question
Buttons
Search engine and directory listing
Pop-up ads
E-mail
 Permission marketing: gives consumer power to opt in or out

2) Media scheduling: when to say it

o Media schedule: specifies the exact media to use for the campaign as well as
when and how often the message should appear
o The media planner considers such factors as the match between the
demographic and psychographic profile of a target audience and the people
reached by a media vehicle, the advertising patterns of competitors and the
capability of the medium to convey the desired information adequately
o Advertising exposure: degree to which the target market will see an
advertising message in a specific medium
o Impressions: the number of people who will be exposed to a message placed
in one or more media vehicles
o To calculate the exposure a message will have in a certain medium, planners
consider reach and frequency
Reach: % of the target market that will be exposed to media vehicle at
least one time; important for widely used products
Frequency: average number of times that these members of the target
market will be exposed to the message; important for complex products or
targeted to relatively small markets many exposures necessary to make
an impact.
Gross rating point (GRPs): multiplying reach by frequency
o Cost per thousands (CPT): compare relative cost effectiveness of different
media; reflects the cost to deliver a message to 1000 people

3) Media scheduling: how to say it

o Continuous schedule maintains a steady stream of advertising throughout the
year; most appropriate for products that we buy on regular basis e.g. shampoo
and unwanted goods e.g. plumbers
Can sustain market leadership
Advertising wear-out; people ignore same message
o Pulsing schedule: varies amount of advertising throughout the year based on
when the product is likely to be demanded
Fighting: extreme, form; short, intense busts

o Step6: evaluate the advertising

- Love-hate relationship to advertisement
- Post testing: conducting research on consumers response to advertising messages
they have seen or heard
- To say less is to say more to consumers
- Three ways to measure the impact of advertisement
o Unaided recall: test by telephone survey or personnel interview, whether the
person remembers seeing an ad during a specified period of time without
giving the person the name of the brand.
o Aided: uses name of brand and sometimes other clues to promote answers
o Attitudinal measures: testing belief or feelings about a product before and
after exposed to message

3. Public Relations
- Marketers use PR activities to influence the attitudes and perceptions of various groups
not only towards companies and brands but also towards politician.
- Basic rules of goods PR= Doing something good and talk about it.
- PR: communication function that seeks to build good relationships with an
organizations publics; all stakeholders
o When PR messages are placed successfully they are more credible than if the
same information appeared in a paid advertisement
- Publicity: unpaid communication about an organization thats gets media exposure
 o Objectives of public relations
Companies that practice IMC know that PR strategies are best used in concert with
advertising, sales promotion and personnel selling to send consistent message to
customers and other stakeholders. As part of IMC plan, PR is often used to accomplish the
following objectives:
o Introducing new products to manufacturers
o Introducing new products to customer
o Influencing government legislation
o Enhancing the image of an organization
o Enhancing image of city, region or country
o Crisis management
o Calling attention to a firms involvement with community

o Planning a public relations campaign

- Public relations campaign: coordinated effort to communicate with one ore more of the
firms audience
o Developing objectives
o Executing
o Evaluating
Much more difficult to assess compared with advertising
Table 12.3, p. 459
Statement of objectives
Situation analysis
Specification of target audiences
Messages to be communicated and specific programme elements
Timetable and budget
Discussion of how the programme will be evaluated

o Public relations activities

- All activities lead to one goal: maintaining that positive image the organization needs
o Press releases: report of some event that organization writes itself and sends
it to the media in hope that it will be published for free
Video news release(VRN): story in film format
Common types of press releases
Timely topics topics in the news
Research project stories universities
Consumer information releases: help consumer to make product
decisions
o Internal PR: companys newsletter; keep employees informed about company
objectives
o Investor relations: develop & distribute annual and quarterly reports &
provide essential communications
o Lobbying: providing info to gvt officials
o Speech writing
o Corporate identity: providing input on corporate identity materials (eg. logo)
o Media relations
o Sponsorships
o Special events eg. visit of a group of foreign investors
o Buzz-building: word of mouth to build a positive buzz about an org.
o Advice and consultancy