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ADVERTISING
       &
  PUBLIC RELATIONS

     Presentation Specially Developed
                    For




Advertising in a *NUTSHELL™ PRODUCTIONS
                      by
                George E. Ablay


                                                                    1
                * a subsidiary of
                AMERICAN ENGLISH®   ameng101.sby@gmail.com   Copyright© 2013
Dear Student,

   This Advertising Module comprises of just
5 lectures and a final test on the sixth meeting.

   Hopefully you can attend all five preparatory
   meetings to get the most out of the module.

Theory will be combined with a few 'case studies',
     such as the “Microsoft Crafting Image”
              case and websearches.

        Enjoy the material and lectures,
       Which are predominantly based on
              Ferrell & Pride's book
      “Marketing Concepts and Strategies”

 and don't forget to take notes where you can,
as it is one of the most effective tools in learning.

                  Any questions?

    Email me at ameng101.sby@gmail.com

                   George Ablay                         2
Table of Contents
                       Part 1
●Objectives                                          4
●What is Advertising?                                5
●Types of Advertising                                6
●Other types of Advertising Categories               7
●Institutional Advertising                           8
●Advocacy Advertising                                9
●Product Advertising I                              10
●Product Advertising II : Pioneer Advertising       11
●Product Competitive Advertising Example            12
●Product Advertising III: Competitive Advertising   12
●Product Advertising IV: Comparative Advertising    14
●1988 Trademark Law Act                             15
●Reminder Advertising                               16
●Reinforcement Advertising                          17

Table of Contents; part 2
●
                                                    18   3
(Developing an Advertisement Campaign)
Objectives
✔   To become aware of the nature and types of
    advertsising
✔   To explore the major steps involved in developing an
    advertising campaign
✔   To find out who is responsible for developing
    advertising campaigns
✔   To gain an understanding of Public Relations (and
    understand its relationship with advertising)
✔   To analyze how public relations is used and evaluated
                                                           4
Advertsing; what is that?
Advertising = “paid nonpersonal communication about an
organization and its products transmitted to a target audience
through mass media.” (Pride & Ferrell, 2000)

Mass media = television, radio, internet, newspapers,
magazines, direct mail, outdoors displays (bill boards), and
signs on mass transit vehicles.

Goal is to reach a variety of audiences by creating visibility of
product/service, brandname, company and people.

Advertisers do so by using the concept of: A.I.D.A.
(attract Attention & awareness; raise consumer's Interest; create Desire
by showing need satisfaction; ask for consumer Action)

Who uses advertising?: Government; Businesses,
Churches and other non-profit organizations; NGO's;                        5

Universities etc.
Types of Advertising

                1. Institutional Advertsing
                2. Advocacy Advertising                            (a type of organizational advertising)


                3. Product Advertising
Forms of
product
                4. Pioneer Advertising
                5. Competitive Advertising
advertising

                                                                                   (type of competitive advertising)

                6. Comparative Advertising
                7. Reminder Advertising
                8. Reinforcement Advertising
Also checkout this website for more ideas on categorization:
                                                                                                              6
http://advertising.about.com/od/advertisingprojects/a/Different-
Types-Of-Advertising-Methods.htm
Other Advertisement Categories

As you may have heard of      please remember they're
advertisement categories      still in some way a form of: such
as:

●Social Media Advertising     product/service advertising
●Guerilla Advertising         product/service advertising
●Informative Advertising      other name for category advertising
●Public Service Advertising   advocacy advertising
●Celebrity Advertising        product/service/advocacy/institutional advertising
●Surrogate Advertising        product advertising




                                                                           7
1. Institutional Advertising
1)“Institutional advertising” promotes
organizational images, ideas, and political issues.

Used to create or maintain an organizational
image.

“IA” usually deals with broad issues ranging from
company's strength to friendliness of employees.

Example: A company that has changed its logo and
tries to explain the philosophy behind the change
(and how this adds value for the customer).

Often aimed to create a more favorable view of an
organization to the general public, shareholders
                                                      8
and nonconsumer groups.
2. Advocacy Advertising
2) “Advocacy Advertising” is a form of
organizational advertising:

When a company promotes its position (its
opinion) on a public issue it is referred to as
“advocacy advertising”.

Example: Government launches a public statement
on TV about a recent tax increase; abortion; welfare
or international trade coalitions to explain their
decisions to the general public.

                                                       9
3. Product Advertising

3) “Product Advertising” promotes the uses,
features, and benefits of a product.

Two types of Product Advertising:

A) Pioneer Advertising

B) Competitive Advertising




                                              10
product advertising cont.'d 1
4. Pioneer Advertising
A) Pioneer Advertising (4):

   Used to stimulate demand for a product
   category (rather than for a specific brand!)


  By informing customers about the 'non-
  specific brand product's benefits, features
  and uses.

  Primarily done at the “Introductory Stage”
  of the product's life cycle: a) introductory;
  b) growth; c) maturity; d) decline)
                                                  11
Competitive Advertising




                          12
product advertising cont'd 3
5. Competitive Advertising

B) Competitive Advertising (5):

  Used to stimulate demand for a specific
  brand.

  By informing customers about the
  potential benefits of a specific product,..

  often directly comparing it with the
  competitions' products, if so.....

                                                13
product advertising cont'd 4
6. Comparative Advertising
6) B.1. Comparative Advertising:

When two or more brands are being compared
on the basis of one or more product characteristics.

Usually the brand promoted has lower market
share, compared to brands with highest market
share in a product category.

Often used with soft drinks, toothpaste,
pain relievers, foods, tires, automobiles
and detergents.
                                                  14
Marketer Be Aware!

“1988 Trade Law Revisions Act”, which provisions'
state that we cannot misrepresent the qualities or
characteristics of competing products.

If we do so anyway, we can expect major law suits
(at least in the U.S.)

So..don't get too carried away in your enthusiasm in “putting
the competition down”, or an initial 'smile' may turn into a sour
face, since “libel and slander” may end up costing your
company millions of dollars!

                                                                    15
7. Reminder Advertising
7) Reminder Advertising:

  Tells customers that an established brand is
  still around and re-emphasizes its benefits,
  uses and characteristics.

 Example: If “Snickers”, the famous and long
 known chocolate-peanut candy bar, launches
 an advertising campaign to re-emphasize its
 full load of peanuts and caramel, to remind us
 that its still here in the midst of plenty of
 competing candy bars.
                                                  16
8. Reinforcement Advertising

         8) Reinforcement Advertising:

             Assures current users of a product that they
             have made the right brand choice, which
             functions to re-assure the customers.

             It also lets them know how to get the most
             benefit from the product.


Also checkout this website page for further categorization of advertising types:
http://www.buzzle.com/articles/different-types-of-advertising.html                 17
Table of Contents
                              Part 2

●Developing an Avertisement Campaign                    18
●ID CDD CEE or the 8 steps in creating an Ad Campaign   19
●Identifying and analyzing a Target Audience            20
●Defining the Advertising Objectives                    21
●Creating the Advertisement Platform                    22
●Determining the Advertisement Appropriation            23
●Developing the Media Plan                              29
●Creating the Advertising Message                       33
●Executing the Campaign                                 41
●Evaluating Advertising Effectiveness                   42
●Public Relations                                       47
●Evaluating Public Relations Effectiveness              53
●Dealing with Unfavorable Public Relations              55
●Task 1; Microsoft Crafting Case                        56
●Task 2: BP Gulf Oil Spill Case                         57
●Test preparatory Questions                             58
●References                                             65

                                                             18
Developing an Advertising
Campaign
Objective is to create a series of advertisements
and placing them in various advertisment media to
reach (a) target audience(s).

There are approximately 8 steps in the process:

                            ID CDD CEE


Check out these campaigns and their objectives:
http://www.ddrewdesign.com/blog/index.php?cmd=article&id=136
                                                               19
ID CDD CEE:
 8 steps in an advertising campaign

1) Identify and analyze a target audience
2) Define advertising objectives
3) Create an advertising platform
4) Determine advertising appropriation (funds)
5) Develop a media plan
6) Create an advertising message
7) Execute the campaign
8) Evaluate the advertising effectiveness


                                                 20
Identify & Analyze a Target Audience
A 'target audience' is the group at which the
advertisements are aimed at.

This helps in establishing an information base.
i.o.w.:
          WHO TO SHOW / TELL WHAT

Information needed:
(the more we know, the better)   1. Age      4. Sex (gender)
                                 2. Income   5. Education
                                 3. Race

Example: When focusing in on specific age group it is
of crucial importance to use age appropriate language
for more effectiveness.                                        21
Defining the Advertising Objectives
Next we need to determine the objectives (inform,
persuade, remind), i.o.w.:
What do we want to accomplish with the campaign?

Objectives (determine what kind of advertising) must be
clear and measurable! (how else do we check success after campaign?)

Use “benchmarks” and indicate how far to deviate from these.

Example: If objective is to increase sales: State current
sales levels (benchmark), and state how much you wish
to gain from the campaign (in $ or %)

Note: Although most marketers seek sales increases, sometimes 22
through Product-Awareness; stated as a “communication objective”:
“to increase product feature awareness from 0-40% within 6 months in our target audience”.
Creating the Advertising Platform
“Advertising Platform” means the basic issues or selling
points to be included in the advertising campaign.

A single advertisement in a campaign (=a series of
advertisements) may address just one of the issues.

Surveys used to measure customers' priorities and
preferences in a product, service or political party.
If wrong message: Campaign may fail!

Must include strong competitive features of the advertised
brand, not just customers' important issues.

Research is expensive, therefore an “advertsing platform”
is often based on opinions from employees in the firm or
                                                       23
the advertsing agency (“trial-and-error approach”).
Determining the Advertising Appropriation

“Advertising Appropriation” simply means the budget
(total amount of money) for a specified period for
advertisement.

Main determiners for the budget include:

1. Geographic size of the market
2. Distribution of the market
3. Type of product advertised
4. Firm's sales' volume vs. competitor's sales volume

Small Advertisement budgets for business products (e.g.
copy machines) compared to product sales.

Large Advertisement budgets for consumer/convenience      24
items such as soft drinks, soaps, and cosmetics.
determining the Advertisement Appropriation cont.'d 1



 Several techniques to be used to determine budgets:

 1) Objective-and-task approach
 2) Percent-of-sales approach
 3) Competition-matching-approach
 4) Arbitrary approach


   We will discuss the details of each approach next.



                                                        25
Determining Advertisement Appropriation
1) Objective-and-Task Approach
Budgeting for an advertising campaign by:

1.Determining its objectives (what to gain) and then;
2.Estimating the cost of all the tasks needed to
  attain them.

“Although most logical”;
Problem:

Accurately estimating the cost of all efforts needed
to get the expected results

Example: Coffee marketer has trouble determining
how much TV advertising needed to raise a brand's 26
market share from 8 to 10%
Determining Advertisement Appropriation
2) Percent-of-Sales Approach
Budgeting for an advertising campaign by
Multiplying the firm's.....

1. Past sales
2. Expected sales (growth or decline)

                     .....by a standard percentage
                      (based on firm's regular advertisement
                              spending or industry average)
“Although most favorable”;
Problem:

This idea assumes that sales create advertising, not other
way around. Thus..when sales decline, advertising              27
budget may too, but this could jeopardize sales further!
Determining Advertisement Appropriation
3) Competition-Match-Approach

Determining an advertising budget by:

Trying to match the competition's ad campaign (cost)

Usually tracked quarterly on national and regional levels
on print; radio; tv; and compared to own advert. spending.

Marketer be aware: Competitor might have deeper
pockets and different objectives, so only to use in
combination with other techniques.


                                                         28
Determining Advertisement Appropriation
4) Arbitrary Approach

Budgeting for an advertising campaign as specified by
a high-level executive in the firm

Problem:

Often leads to under- or over spending

If set too low >> it cannot reach its full potential
If set too high >> financial resources are wasted

In conclusion:
Correct appropriation is critical for an advertising campaign's
success and a company's or its brand's survival.
                                                                  29
Developing the Media Plan
A Media Plan specifies the media vehicles and the schedule
for running the advertisements

Media vehicles are: specific magazines, tv stations,
newspapers, radio stations, bus lines, internet, postal service
(public transport advertising) etc.

Schedule: includes the dates and times the ads will appear in
the 'vehicles'

The Media Plan determines who (target audience; highest
percentage = ”reach”), when, where and how often
(frequency) the target will be exposed to the advertising
message
                                                              30
developing the media plan continued 1

Primary goal: To reach the largest amount of people in the target
that the budget will allow,

Secondary goal: Deliver the right message to the highest percentage
(“reach”) of consumers in target as often as possible within budget.

Media planning is complex because we need careful study of
a) demographics and b) media markets. Some TV stations can target
many Asians, others many Afro- Americans, but in afternoons target kids,
while at night adults in mind.. etc.

Same counts for some magazines which attract females, others males
and others again teenagers for example. Each needs different approach.

Printed media used for addressing complex issues, but..
                            TV ads more used to highlight selling points

                  You've seen the light,                                   31
                  but can you reach it?
developing the media plan continued 2

 Also: food ads in full color likely better effect than in B&W in
 newspapers but..cost is to be considered!

 The Cost Comparison Indicator lets a marketer compare the
 costs of various vehicles within a medium (compare cost of two
 magazines for ex.)

 CPM = Cost Per Thousand people exposed to a one page
 advertisement (for magazines/newspapers)




The table
shows how
much money
businesses
spend on
various media >                                                     32
Creating the Advertising Message
An Advertising Message has content and form

A Product's..
● Features

● Uses

● Benefits   ..influence >> content of the message

Characteristics in target audience..., like:
● Gender              ● Race

● Age                 ● Income

● Education           ● Occupation

● Lifestyle

                                  ..influence >> content & form
                                 (form = 'lay-out')
 Example: When Proctor & Gamble market “Crest” toothpaste to
 children>>daily brushing and cavity control emphasized, but...
 When “Crest” advertized to adults >> tartar and plague emphasized   33
creating the advertising message cont.'d 1

 To communicate effectively advertisers use:

 ● words                      ●meaningful,
 ● symbols       ...that are: ●familiar and
 ● illustrations
                              ●attractive

                                      ...to people in target audience


 Advertising campaign objectives also influence content
 and form (lay-out):

     -If aim is: large sales increases >> hard-hitting /high
                 impact language and symbols
     -If aim is: increasing brand awareness >> much repetition
                 of brand name and words / illustrations
                 associated with it.                           34
creating the advertising message cont.'d 2


The Advertising Platform is the foundation on which
campaign messages are built.

Important factors influencing the message are...

1) Choice of Media
2) Regions

(1) Outdoors display (billboards) for simple, concise
    messages; magazines & newspapers for more detail
(2) “Regional Issues” (versions of magazines across a
     nation) allow different times and areas to deliver same
     message or a different message

                                                               35
creating the advertising message cont.'d 3

Copy is the verbal
portion of an ad

Usually Includes:
1) Headlines
2) Illustration
3) Subheadlines
4) Body copy
5) Signature
(1) Headline is critical!
(2) Illustration should be
    attractive & connecting
(3) Subheadline links headline
    to body copy
(4) Body copy explains headline
(5) Signature is ad's sponsor
    (incl. ™, logo, name and/or
    address; must be pretty,
   legible e-z to identify in                36
   various sizes)
creating the advertising message cont.'d 4


Developing the “Body Copy”:

a) Identify desire or problem
b) Recommend product as best way to solve or satisfy
c) State product's advantages and explain why best option
d) Substantiate advertising claims (show proof / results)
e) Ask buyer for action

 (d) be credible so proof will strengthen image of product
     and integrity of company




                                                             37
creating the advertising message cont.'d 5

Radio Copy must be informal and conversational
to attract listener's attention (usually 'not tuned in')

Radio copy must be short; in familiar terms
(not over 2,5 words per second) >> repetition is key!

Television Copy designed to make optimal use of visual
effect (demonstrations), and audio should not overpower visual

TV Copywriting procedure':
1.Video in left column ; Audio in the right column ('parallel form')
2.Copywriters and artists combine copy with visual material
                            to create >>>>> storyboard
3.Technical personnel use storyboard as blueprint for commercial

Storyboard = series of miniature tv screens combining copy with visual
(sketches) and audio script to show sequence of scenes in commercials
                                                                  38
creating the advertising message cont.'d 6




                                  Storyboard used for commercial for AutoNation™
                                  USA (largest auto dealership network in America)
                                                                             39
creating the advertising message cont.'d 7

The Layout of an advertisement is the physical arrangement
of the illustration and the copy (-headline, subheadline, body
copy and signature).

Final layout is product of several stages that develop
exchange of ideas among people who develop the advertising
campaign >> used to instruct production personnel.

Illustrations can be photos, drawings or graphs/charts/tables:

Used to attract attention and convey the message
(sometimes difficult to put into words) (“a pictures says it all”)

Illustrations can express:
●Contrast

●Comparison

●Diagrams
                                                          40
●Testimonials
                           Layout & Illustrations = Artwork
Executing the Campaign

After completion of the Media Plan and the
Advertising Message it's time for...”Action”!

Campaign execution requires extensive planning,
scheduling and coordination.

Parties that may be involved:
●Production companies

●Research organizations

●Media firms

●Printers
                              All must be synchronized for on-time
                              delivery of services and products!
●Photoengravers

●Commercial artists



                                                                     41
Evaluating Advertising Effectiveness
What must be evaluated?:
●Achievement of advertising objectives

●Assessing effectiveness of copy

●    “            “      “ illustrations
●    “            “      “ layout
●Evaluating media




When to evaluate? Before > During > After
Before = “Pretest” to use a consumer jury (panel of buyers)
During = “Inquiries” to use coupons, toll free phone no.
          or form; then responses measured to determine
         effectiveness of advertisement (most response=superior)
After = “Posttest” to use according to advertising objectives
           (if objective is to increase brand awareness > do survey)

                                                                42
evaluating advertising effectiveness cont'd 1
      Three types of Posttesting, based on 'memory':

      1) Recognition test: show print ad to respondents ask if
                           they recognize it. If “yes”>more Q's
                                            follow to see how much is remembered from the
                                            advertisement > determine degree of effectiveness of Ad
      2) Recall test:                       respondents do not get to see ad, but
                                            are asked what they have seen or
                                            heard recently.
     Aided Recall Test:                                                    ! People more likely to buy
 subjects see list of products             Unaided Recall Test:            something if they remember
with brandnames, products, companies   subject identifies ads, w/o clues
                                                                           an advertisement of it.

      3) Single source data: sophisticated technique to track
            consumer behavior by monitoring when TV watching is done and on
            what TV station. Micro computers in preselected homes record and
            collect data. Also membership cards with buyers' personal data etc: Scan43
                                                                                     and
            record purchases at checkout >> links exposure of ads to purchase behavior!
evaluating advertising effectiveness cont'd 2

Changes in sales and market share hard to measure
accurately because of..

..external influences:
●Competitor's actions

●Government actions

●Changes in economy

●Changes in consumer preference

●Weather changes




By using “benchmarks” (past sales figures vs. current
sales) and advertising expenditures data, marketers
make gross estimates of effects of campaign on sales
and market share.
                                                        44
Who Develops the Advertising Campaign?

By one person or a team either inside firm's own
marketing department or through external agency

Small firms: one or two people inside, but depend greatly on
local newspaper, or broadcast station for copywriting, artwork
and advice about scheduling.

Large firms:
●Either members of their own advertising department

(copywriters; artists; media buyers; technical production coordinators)
or ..
●External advertising agency (less dependence for wholesale

and business products; but more reliance for consumer products)


                                                                          45
who develops the advertising campaign? cont'd 1


 Advertising agencies often have good access to highly skilled
 experts in regards to:

 -research
 -legal advice
 -media

 They are also more objective toward a company's product.

 Advertising agencies normally receive 15% commission
 from media, makes it more affordable for advertisers.


                                                                 46
Public Relations
Public Relations is a broad set of communication
efforts to create and keep favorable relationships
between an organization and its audiences.

Audiences are referred to as

●Internal : employees, shareholders, suppliers
●External : consumers, government, media, investors




PR can be used to promote:
People        Activities
Products      Ideas
Places        Countries
                                                      47
public relations cont'd 1

PR can help a company to maintain image of
●Innovativeness

●
 Social responsibility
●Dependability




This helps keeping up:
●Public awareness

●
 Employee morale
●Media attention




Media often report on news stories that involve
the general public/communities >>>
PR helps maintaining positive public visibility
                                                  48
public relations cont'd 2

Main PR print tools: Annual Reports
To communicate corporate objectives, products, image,
market share, stock values and direction to general
audience and media.




But other effective print tools are:
Brochures; Newsletters; Company magazines;
Logo's, stationery, business cards



                                                        49
public relations cont'd 3

Other major PR tools include:

-*Speeches (at Universities; Fairs, Conventions, on e.g. New
 technology; materials, sustainable production methods etc.)
-*Event sponsorships (sport events, parades, shows)
-Publicity (news stories published free in papers on corporate
 expansion, acquisitions, research, new product launches etc.)
-News letters/releases (300 words press releases on new
 product launch or safety issues etc.)
-Feature articles (3000 words script for specific publication)
-Captioned photographs (picture with brief description explaining)
-*Press conferences (meetings prepared to inform public through
  various media attention)

* 'non-print'
                                                                 50
public relations cont'd 4

Event Sponsorships are special events
paid for in part or in whole by a company.




Is an effective way of drawing media
attention often with low budgets.
                                             51
public relations cont'd 5
Press Conferences are meetings called to announce
major (corporate) news events.

Media personnel are invited by letter and are supplied
with video/audio tapes to broadcast stations and
editorials to newspapers in the hope for publicity.
Must be newsworthy, well-timed, interesting, accurate for coverage.

Advantages:
-credibility (better public perception than advertisements)
-news value (often very informational, extended coverage)
-word-of-mouth communications
-perception of being endorsed by media
-low cost compared to advertisement

Disadvantage:
                                                                      52
-Media distribution not controllable.
Evaluating Public Relations
Effectiveness
Research necessary in form of:

Environmental Monitoring identifies changes in
public opinion affecting an organization.

Public Relations Audit used to measure effects of a
specific PR program and assess the company's
image by public.

Communications Audit is done when a content
analysis of messages is conducted among audience
members by readability study or readership survey.

                                                      53
evaluating public relations effectiveness cont'd 1

Counting publicity exposure based PR is effective tool;
how often and through which channel and where public
exposed to messages.

Clipping services often hired to track publicity. They clip
and collect articles on company/product messages
appeared in media.

TV stations are requested to track dates and times of
broadcasts, however not always complied. Tracking
services costly >> does not measure attitudes.

Surveys before and after media exposure can give
    best picture of PR results, as do sales figures!
                                                              54
Dealing with Unfavorable
Public Relations
PR as a result of unexpected bad events such as:
-Accidents (plane crash)
-Unsafe operations (resulting in personnel injuries)
-Controversial corporate actions (anti-competitive behavior)
Can cause rapid downgrading of company image and products.

Negative PR prevention include:
●Safety programs
●
 Inspections
●
 Quality Control procedures

    To lessen negative effects companies must have emergency action
    plans in place and be forthright instead of ignoring media as it can
    potentially wipe out millions of dollars spent on advertisements. 55
Tasks 1:
Read the “Microsoft Crafting” Case
Then answer the following questions:

1. What major Public Relations tools does Microsoft use?
2. Who are the major audiences Microsoft wants to reach?
3. How should Microsoft evaluate the results ot its PR?
4. How do you think Microsoft should have used PR to
   communicate its views during the antitrust trial? Explain.




                                                                56
Task 2:
Watch the CBS video of “BP in the Gulf 2010”

Then answer the following questions:

1. What was BP's initial response to public inquiries
   on the Gulf incident?
2. Do you believe BP's response was correct? Explain.
3. How could PR have helped in terms of damage control?
4. What are the worst negative implications for BP?
5. What should BP do next to recover the losses?




                                                     57
Test Preparatory Questions-Answers:

,Q1. What is advertisement? "Paid non-personal communication about an organization and
its products transmitted to a target audience through mass media."

Q2. What does the acronym and concept of "AIDA" mean? A. Attract Attention & Awareness
from the consumer B. Raise Interest from the Consumer C. Create Desire by showing Need
Satisfaction D. Ask for Action.

Q3. "Don't litter, keep our city glitter"; a. Who is most likely the sponsor behind this
headline? b. What type of advertising would it fall under? a.Government b. Advocacy
Advertisement.

 Q4. Toyota for strong communities"; what type of advertising would this fall under?
Institutional Advertisement.

Q5. "Switch to a flat panel TV, it will change your life for the better"; a. what type of
advertisement is this? b. Who could be the sponsor of such a seemingly unclaimed
advert? c. Why could this kind of advertsement be necessary? d. At what point would
this be most appropriate (think product life-cycle). a. Pioneer Advertisement. b. An
industry Association (makers of flat panel tv) c. To change consumer habits, move them from
buying traditional products in a specific category to buying same product type in a new
form/technological outfit, or just more of it. (Think of the "Drink Milk" ads)
                                                                                           58
test preparatory questions cont'd 1

Q6. Most advertisements we see are what kind of advertisement:
   a. advocacy advertisement     b. institutional advertisements
   c. competitive advertisement  d. viral advertisement

Q7. What does the acronym "IDCDDCEE" mean? b. What does it represent?
  1. Identify a target audience 2. Define advertising objectives 3. Create an
   advertising platform 4. Determine advertising budget 5. Develop a media plan 6.
   Create an advertisement message 7. Execute the campaign 8. Evaluate effectiveness.
   The 8 steps in the advertsing campaign

Q8. Which aspect is not an advertisement budget determiner?
    a. geographic size of the market b. distribution of the market
    c. firm's location               d. product type

Q9. a.What is the problem in an "Objective-and-Task" Advert-Appropr.
    Approach? a. hard to estimate all the cost to raise brand awareness or sales by a
    set percentage. b. What is the problem in an Arbitrary Approach? b. Over-or
    under-spending resulting in either under utilization of campaign potential or waste.

Q10. What is a Media Plan and what purpose does it serve? The Media Plan
    specifies the media vehicles and schedule for running the ads. It determines who,
                                                                                      59
    when, where and how often the target will be exposed to the advertising message.
test preparatory questions cont'd 2

Q11. With "Reach" in a Media Plan we mean:
a. aiming at the target market
b. the largest amount of people in a market
c. keeping the Media Plan within the reach of a budget.
d. sending the right message to the highest % of actual/potential consumers in the target.

 Q12. "The key concept at the heart of Juenger’s fallacy — the thing which Meeker doesn’t
seem to understand — is the fact that internet advertising in no way substitutes for TV or print
advertising, no matter how often digital ad-sales people bring out their metrics of comparative
CPMs." (Salmon, F.; 2013 blogs.reuters.com)

"CPM" refers to:
 a. Consumer Packaging Method b. Cost Per Thousand exposed to a one page advertisement
 c. Consumer Price Marketing  d. Cost Per Meter of celluloid used in film production.

Q13. In 2012 most of the advertising dollars, globally were spent in ranking order:
a. newspapers; tv; magazines; direct-mail c. tv; internet; newspapers; magazines
b . internet; tv; newspapers; magazines   d. tv; newspapers; internet; magazines


                                                                                           60
test preparatory questions cont'd 3
,Q14. "In 2011, I gave a talk to a group of online ad-sales people who were so full of
the multitude of different ways that they could target and quantify their product, they
literally no longer understood what brand advertising is, or why it exists, or why
brands would be so foolish as to spend so much money on it. They’re quants, living in
a world where something only has value insofar as it can be quantified, and where the
unquantifiable therefore is perceived to have no value at all. In other words, they’re
basically in the direct-marketing business: they’re the digital version of junk mail. As a
result, just about every website in the world is in the business of delivering that digital
junk mail to our computers and iPhones and iPads." (Salmon, F.; 2013
blogs.reuters.com)

A. According to Felix Salmon at Reuters we can infer that internet
   marketing is the digital equivalent of which type of advertising?
  a. junk mail b. brand advertising c. reminder advertising d. direct-mail advertising

B. What is the vehicle for conventional 'direct-mail advertisement'?
   The postal service.

C. What is the vehicle for digital advertisement & marketing? The internet.

D. How would you define “brand advertisement”? It is advertising with a strong
   emphasis on the company brand (logo and/or company name) also known as                     61
   Integrated Marketing Communications (IMC).
test preparatory questions cont'd 4

Q15. "What’s more interesting is that digital advertising now accounts for almost a quarter
of all media spending, 22 percent. That’s a huge milestone for a medium that accounted
for only 14 percent three years ago." (Fitzgerald, T.; 2013 MediaLife Magazine)


                          We can conclude above all from this statement and
                          the bar graph displayed here that:
                          a. internet-ad spending has surpassed print-ad spending in '12
                          b. magazine-ad spending is stable
                           c. newspaper-ads are still favored
                           d. online-ad spending is getting more expensive




Q16. Which one is/are (an) Advertisement Objective:
   a. inform          b. persuade        e. all of the above
   c. remind          d. increase sales  f. Only a. and b. are correct
                                                                                       62
test preparatory questions cont'd 5

Q17. How do we best measure an advertising campaign's effectiveness:
   a. by conducting marketing surveys        b. by setting benchmarks
   c. by checking the competition's repsonse d. both a. and b. are correct

Q18. When to evaluate / what to measure for Ad campaign effectiveness?:
   a. Before/Pretest buyer's sentiments
   b. During/Inquiries (coupons;forms etc.) to test change in buyer's perception.
   c. After/Posttesting; survey e.g. brand awareness or company's image
   d. All of the above

Q19. Look at the picture below and indicate the five elements of print ads:
                                            h...
                                       a. -----------------------------------
                                            i...
                                       b. -----------------------------------
                                            s...
                                       c. -----------------------------------
                                            s....
                                       d. -----------------------------------
                                            b....
                                       e. -----------------------------------
                                                                                    63
test preparatory questions cont'd 6

Q20. What is not a non-print PR tools:
   a. press conferences
   b. circulating news letters
   c. speeches
   d. event sponsorships

Q21. What external influences can affect an Advertisement Campaign?
     Circle all that apply:
     a. Government regulation     c. Changes in economy
 .   b. Wheather changes          d. Changes in consumer preference

Q22. Which one is an advantage of press-conferences as a PR tool?
     a. credibility    b. paid for by the company c. Environmentally friendly
     d. public coverage

Q23. What's the main PR print tool called?
     a. quarterly report b. annual report  c. special report d. monthly report

Q24. What is a disadvantage of publicity?
     a. it's expensive b. it draws negative attention c. it's uncontrollable   d. it's credible

Q25. What is meant by “publicity”?                                                         64
     a. advertisement  b. public awareness         c. free media coverage d. city life
Additional Materials Recommended
for Viewing:

See “Marketing Videos” (for on-campus students only)
A selection of relevant viewings by Advertising in a Nutshell™ Productions

References:

Jobber, D. and Ellis-Chadwick, F. (2013) “Principles and Practice of Marketing”,
7th. Edition, MC Graw-Hill Higher Education, United Kingdom.

Nickels, W.G.; McHugh, J.M and McHugh, S.(1999) “Understanding Business”,
5th edition, Irwin/McGraw-Hill Companies, USA.

Pride, W. and Ferrell, O.C. (2000) “Marketing Concepts and Strategies”,
Houghton Mifflin Company, Boston, N.Y.

        www.ddrewdesign.com, accessed on 02/02/13


                                                                                   65

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Advertising module

  • 1. ADVERTISING & PUBLIC RELATIONS Presentation Specially Developed For Advertising in a *NUTSHELL™ PRODUCTIONS by George E. Ablay 1 * a subsidiary of AMERICAN ENGLISH® ameng101.sby@gmail.com Copyright© 2013
  • 2. Dear Student, This Advertising Module comprises of just 5 lectures and a final test on the sixth meeting. Hopefully you can attend all five preparatory meetings to get the most out of the module. Theory will be combined with a few 'case studies', such as the “Microsoft Crafting Image” case and websearches. Enjoy the material and lectures, Which are predominantly based on Ferrell & Pride's book “Marketing Concepts and Strategies” and don't forget to take notes where you can, as it is one of the most effective tools in learning. Any questions? Email me at ameng101.sby@gmail.com George Ablay 2
  • 3. Table of Contents Part 1 ●Objectives 4 ●What is Advertising? 5 ●Types of Advertising 6 ●Other types of Advertising Categories 7 ●Institutional Advertising 8 ●Advocacy Advertising 9 ●Product Advertising I 10 ●Product Advertising II : Pioneer Advertising 11 ●Product Competitive Advertising Example 12 ●Product Advertising III: Competitive Advertising 12 ●Product Advertising IV: Comparative Advertising 14 ●1988 Trademark Law Act 15 ●Reminder Advertising 16 ●Reinforcement Advertising 17 Table of Contents; part 2 ● 18 3 (Developing an Advertisement Campaign)
  • 4. Objectives ✔ To become aware of the nature and types of advertsising ✔ To explore the major steps involved in developing an advertising campaign ✔ To find out who is responsible for developing advertising campaigns ✔ To gain an understanding of Public Relations (and understand its relationship with advertising) ✔ To analyze how public relations is used and evaluated 4
  • 5. Advertsing; what is that? Advertising = “paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media.” (Pride & Ferrell, 2000) Mass media = television, radio, internet, newspapers, magazines, direct mail, outdoors displays (bill boards), and signs on mass transit vehicles. Goal is to reach a variety of audiences by creating visibility of product/service, brandname, company and people. Advertisers do so by using the concept of: A.I.D.A. (attract Attention & awareness; raise consumer's Interest; create Desire by showing need satisfaction; ask for consumer Action) Who uses advertising?: Government; Businesses, Churches and other non-profit organizations; NGO's; 5 Universities etc.
  • 6. Types of Advertising 1. Institutional Advertsing 2. Advocacy Advertising (a type of organizational advertising) 3. Product Advertising Forms of product 4. Pioneer Advertising 5. Competitive Advertising advertising (type of competitive advertising) 6. Comparative Advertising 7. Reminder Advertising 8. Reinforcement Advertising Also checkout this website for more ideas on categorization: 6 http://advertising.about.com/od/advertisingprojects/a/Different- Types-Of-Advertising-Methods.htm
  • 7. Other Advertisement Categories As you may have heard of please remember they're advertisement categories still in some way a form of: such as: ●Social Media Advertising product/service advertising ●Guerilla Advertising product/service advertising ●Informative Advertising other name for category advertising ●Public Service Advertising advocacy advertising ●Celebrity Advertising product/service/advocacy/institutional advertising ●Surrogate Advertising product advertising 7
  • 8. 1. Institutional Advertising 1)“Institutional advertising” promotes organizational images, ideas, and political issues. Used to create or maintain an organizational image. “IA” usually deals with broad issues ranging from company's strength to friendliness of employees. Example: A company that has changed its logo and tries to explain the philosophy behind the change (and how this adds value for the customer). Often aimed to create a more favorable view of an organization to the general public, shareholders 8 and nonconsumer groups.
  • 9. 2. Advocacy Advertising 2) “Advocacy Advertising” is a form of organizational advertising: When a company promotes its position (its opinion) on a public issue it is referred to as “advocacy advertising”. Example: Government launches a public statement on TV about a recent tax increase; abortion; welfare or international trade coalitions to explain their decisions to the general public. 9
  • 10. 3. Product Advertising 3) “Product Advertising” promotes the uses, features, and benefits of a product. Two types of Product Advertising: A) Pioneer Advertising B) Competitive Advertising 10
  • 11. product advertising cont.'d 1 4. Pioneer Advertising A) Pioneer Advertising (4): Used to stimulate demand for a product category (rather than for a specific brand!) By informing customers about the 'non- specific brand product's benefits, features and uses. Primarily done at the “Introductory Stage” of the product's life cycle: a) introductory; b) growth; c) maturity; d) decline) 11
  • 13. product advertising cont'd 3 5. Competitive Advertising B) Competitive Advertising (5): Used to stimulate demand for a specific brand. By informing customers about the potential benefits of a specific product,.. often directly comparing it with the competitions' products, if so..... 13
  • 14. product advertising cont'd 4 6. Comparative Advertising 6) B.1. Comparative Advertising: When two or more brands are being compared on the basis of one or more product characteristics. Usually the brand promoted has lower market share, compared to brands with highest market share in a product category. Often used with soft drinks, toothpaste, pain relievers, foods, tires, automobiles and detergents. 14
  • 15. Marketer Be Aware! “1988 Trade Law Revisions Act”, which provisions' state that we cannot misrepresent the qualities or characteristics of competing products. If we do so anyway, we can expect major law suits (at least in the U.S.) So..don't get too carried away in your enthusiasm in “putting the competition down”, or an initial 'smile' may turn into a sour face, since “libel and slander” may end up costing your company millions of dollars! 15
  • 16. 7. Reminder Advertising 7) Reminder Advertising: Tells customers that an established brand is still around and re-emphasizes its benefits, uses and characteristics. Example: If “Snickers”, the famous and long known chocolate-peanut candy bar, launches an advertising campaign to re-emphasize its full load of peanuts and caramel, to remind us that its still here in the midst of plenty of competing candy bars. 16
  • 17. 8. Reinforcement Advertising 8) Reinforcement Advertising: Assures current users of a product that they have made the right brand choice, which functions to re-assure the customers. It also lets them know how to get the most benefit from the product. Also checkout this website page for further categorization of advertising types: http://www.buzzle.com/articles/different-types-of-advertising.html 17
  • 18. Table of Contents Part 2 ●Developing an Avertisement Campaign 18 ●ID CDD CEE or the 8 steps in creating an Ad Campaign 19 ●Identifying and analyzing a Target Audience 20 ●Defining the Advertising Objectives 21 ●Creating the Advertisement Platform 22 ●Determining the Advertisement Appropriation 23 ●Developing the Media Plan 29 ●Creating the Advertising Message 33 ●Executing the Campaign 41 ●Evaluating Advertising Effectiveness 42 ●Public Relations 47 ●Evaluating Public Relations Effectiveness 53 ●Dealing with Unfavorable Public Relations 55 ●Task 1; Microsoft Crafting Case 56 ●Task 2: BP Gulf Oil Spill Case 57 ●Test preparatory Questions 58 ●References 65 18
  • 19. Developing an Advertising Campaign Objective is to create a series of advertisements and placing them in various advertisment media to reach (a) target audience(s). There are approximately 8 steps in the process: ID CDD CEE Check out these campaigns and their objectives: http://www.ddrewdesign.com/blog/index.php?cmd=article&id=136 19
  • 20. ID CDD CEE: 8 steps in an advertising campaign 1) Identify and analyze a target audience 2) Define advertising objectives 3) Create an advertising platform 4) Determine advertising appropriation (funds) 5) Develop a media plan 6) Create an advertising message 7) Execute the campaign 8) Evaluate the advertising effectiveness 20
  • 21. Identify & Analyze a Target Audience A 'target audience' is the group at which the advertisements are aimed at. This helps in establishing an information base. i.o.w.: WHO TO SHOW / TELL WHAT Information needed: (the more we know, the better) 1. Age 4. Sex (gender) 2. Income 5. Education 3. Race Example: When focusing in on specific age group it is of crucial importance to use age appropriate language for more effectiveness. 21
  • 22. Defining the Advertising Objectives Next we need to determine the objectives (inform, persuade, remind), i.o.w.: What do we want to accomplish with the campaign? Objectives (determine what kind of advertising) must be clear and measurable! (how else do we check success after campaign?) Use “benchmarks” and indicate how far to deviate from these. Example: If objective is to increase sales: State current sales levels (benchmark), and state how much you wish to gain from the campaign (in $ or %) Note: Although most marketers seek sales increases, sometimes 22 through Product-Awareness; stated as a “communication objective”: “to increase product feature awareness from 0-40% within 6 months in our target audience”.
  • 23. Creating the Advertising Platform “Advertising Platform” means the basic issues or selling points to be included in the advertising campaign. A single advertisement in a campaign (=a series of advertisements) may address just one of the issues. Surveys used to measure customers' priorities and preferences in a product, service or political party. If wrong message: Campaign may fail! Must include strong competitive features of the advertised brand, not just customers' important issues. Research is expensive, therefore an “advertsing platform” is often based on opinions from employees in the firm or 23 the advertsing agency (“trial-and-error approach”).
  • 24. Determining the Advertising Appropriation “Advertising Appropriation” simply means the budget (total amount of money) for a specified period for advertisement. Main determiners for the budget include: 1. Geographic size of the market 2. Distribution of the market 3. Type of product advertised 4. Firm's sales' volume vs. competitor's sales volume Small Advertisement budgets for business products (e.g. copy machines) compared to product sales. Large Advertisement budgets for consumer/convenience 24 items such as soft drinks, soaps, and cosmetics.
  • 25. determining the Advertisement Appropriation cont.'d 1 Several techniques to be used to determine budgets: 1) Objective-and-task approach 2) Percent-of-sales approach 3) Competition-matching-approach 4) Arbitrary approach We will discuss the details of each approach next. 25
  • 26. Determining Advertisement Appropriation 1) Objective-and-Task Approach Budgeting for an advertising campaign by: 1.Determining its objectives (what to gain) and then; 2.Estimating the cost of all the tasks needed to attain them. “Although most logical”; Problem: Accurately estimating the cost of all efforts needed to get the expected results Example: Coffee marketer has trouble determining how much TV advertising needed to raise a brand's 26 market share from 8 to 10%
  • 27. Determining Advertisement Appropriation 2) Percent-of-Sales Approach Budgeting for an advertising campaign by Multiplying the firm's..... 1. Past sales 2. Expected sales (growth or decline) .....by a standard percentage (based on firm's regular advertisement spending or industry average) “Although most favorable”; Problem: This idea assumes that sales create advertising, not other way around. Thus..when sales decline, advertising 27 budget may too, but this could jeopardize sales further!
  • 28. Determining Advertisement Appropriation 3) Competition-Match-Approach Determining an advertising budget by: Trying to match the competition's ad campaign (cost) Usually tracked quarterly on national and regional levels on print; radio; tv; and compared to own advert. spending. Marketer be aware: Competitor might have deeper pockets and different objectives, so only to use in combination with other techniques. 28
  • 29. Determining Advertisement Appropriation 4) Arbitrary Approach Budgeting for an advertising campaign as specified by a high-level executive in the firm Problem: Often leads to under- or over spending If set too low >> it cannot reach its full potential If set too high >> financial resources are wasted In conclusion: Correct appropriation is critical for an advertising campaign's success and a company's or its brand's survival. 29
  • 30. Developing the Media Plan A Media Plan specifies the media vehicles and the schedule for running the advertisements Media vehicles are: specific magazines, tv stations, newspapers, radio stations, bus lines, internet, postal service (public transport advertising) etc. Schedule: includes the dates and times the ads will appear in the 'vehicles' The Media Plan determines who (target audience; highest percentage = ”reach”), when, where and how often (frequency) the target will be exposed to the advertising message 30
  • 31. developing the media plan continued 1 Primary goal: To reach the largest amount of people in the target that the budget will allow, Secondary goal: Deliver the right message to the highest percentage (“reach”) of consumers in target as often as possible within budget. Media planning is complex because we need careful study of a) demographics and b) media markets. Some TV stations can target many Asians, others many Afro- Americans, but in afternoons target kids, while at night adults in mind.. etc. Same counts for some magazines which attract females, others males and others again teenagers for example. Each needs different approach. Printed media used for addressing complex issues, but.. TV ads more used to highlight selling points You've seen the light, 31 but can you reach it?
  • 32. developing the media plan continued 2 Also: food ads in full color likely better effect than in B&W in newspapers but..cost is to be considered! The Cost Comparison Indicator lets a marketer compare the costs of various vehicles within a medium (compare cost of two magazines for ex.) CPM = Cost Per Thousand people exposed to a one page advertisement (for magazines/newspapers) The table shows how much money businesses spend on various media > 32
  • 33. Creating the Advertising Message An Advertising Message has content and form A Product's.. ● Features ● Uses ● Benefits ..influence >> content of the message Characteristics in target audience..., like: ● Gender ● Race ● Age ● Income ● Education ● Occupation ● Lifestyle ..influence >> content & form (form = 'lay-out') Example: When Proctor & Gamble market “Crest” toothpaste to children>>daily brushing and cavity control emphasized, but... When “Crest” advertized to adults >> tartar and plague emphasized 33
  • 34. creating the advertising message cont.'d 1 To communicate effectively advertisers use: ● words ●meaningful, ● symbols ...that are: ●familiar and ● illustrations ●attractive ...to people in target audience Advertising campaign objectives also influence content and form (lay-out): -If aim is: large sales increases >> hard-hitting /high impact language and symbols -If aim is: increasing brand awareness >> much repetition of brand name and words / illustrations associated with it. 34
  • 35. creating the advertising message cont.'d 2 The Advertising Platform is the foundation on which campaign messages are built. Important factors influencing the message are... 1) Choice of Media 2) Regions (1) Outdoors display (billboards) for simple, concise messages; magazines & newspapers for more detail (2) “Regional Issues” (versions of magazines across a nation) allow different times and areas to deliver same message or a different message 35
  • 36. creating the advertising message cont.'d 3 Copy is the verbal portion of an ad Usually Includes: 1) Headlines 2) Illustration 3) Subheadlines 4) Body copy 5) Signature (1) Headline is critical! (2) Illustration should be attractive & connecting (3) Subheadline links headline to body copy (4) Body copy explains headline (5) Signature is ad's sponsor (incl. ™, logo, name and/or address; must be pretty, legible e-z to identify in 36 various sizes)
  • 37. creating the advertising message cont.'d 4 Developing the “Body Copy”: a) Identify desire or problem b) Recommend product as best way to solve or satisfy c) State product's advantages and explain why best option d) Substantiate advertising claims (show proof / results) e) Ask buyer for action (d) be credible so proof will strengthen image of product and integrity of company 37
  • 38. creating the advertising message cont.'d 5 Radio Copy must be informal and conversational to attract listener's attention (usually 'not tuned in') Radio copy must be short; in familiar terms (not over 2,5 words per second) >> repetition is key! Television Copy designed to make optimal use of visual effect (demonstrations), and audio should not overpower visual TV Copywriting procedure': 1.Video in left column ; Audio in the right column ('parallel form') 2.Copywriters and artists combine copy with visual material to create >>>>> storyboard 3.Technical personnel use storyboard as blueprint for commercial Storyboard = series of miniature tv screens combining copy with visual (sketches) and audio script to show sequence of scenes in commercials 38
  • 39. creating the advertising message cont.'d 6 Storyboard used for commercial for AutoNation™ USA (largest auto dealership network in America) 39
  • 40. creating the advertising message cont.'d 7 The Layout of an advertisement is the physical arrangement of the illustration and the copy (-headline, subheadline, body copy and signature). Final layout is product of several stages that develop exchange of ideas among people who develop the advertising campaign >> used to instruct production personnel. Illustrations can be photos, drawings or graphs/charts/tables: Used to attract attention and convey the message (sometimes difficult to put into words) (“a pictures says it all”) Illustrations can express: ●Contrast ●Comparison ●Diagrams 40 ●Testimonials Layout & Illustrations = Artwork
  • 41. Executing the Campaign After completion of the Media Plan and the Advertising Message it's time for...”Action”! Campaign execution requires extensive planning, scheduling and coordination. Parties that may be involved: ●Production companies ●Research organizations ●Media firms ●Printers All must be synchronized for on-time delivery of services and products! ●Photoengravers ●Commercial artists 41
  • 42. Evaluating Advertising Effectiveness What must be evaluated?: ●Achievement of advertising objectives ●Assessing effectiveness of copy ● “ “ “ illustrations ● “ “ “ layout ●Evaluating media When to evaluate? Before > During > After Before = “Pretest” to use a consumer jury (panel of buyers) During = “Inquiries” to use coupons, toll free phone no. or form; then responses measured to determine effectiveness of advertisement (most response=superior) After = “Posttest” to use according to advertising objectives (if objective is to increase brand awareness > do survey) 42
  • 43. evaluating advertising effectiveness cont'd 1 Three types of Posttesting, based on 'memory': 1) Recognition test: show print ad to respondents ask if they recognize it. If “yes”>more Q's follow to see how much is remembered from the advertisement > determine degree of effectiveness of Ad 2) Recall test: respondents do not get to see ad, but are asked what they have seen or heard recently. Aided Recall Test: ! People more likely to buy subjects see list of products Unaided Recall Test: something if they remember with brandnames, products, companies subject identifies ads, w/o clues an advertisement of it. 3) Single source data: sophisticated technique to track consumer behavior by monitoring when TV watching is done and on what TV station. Micro computers in preselected homes record and collect data. Also membership cards with buyers' personal data etc: Scan43 and record purchases at checkout >> links exposure of ads to purchase behavior!
  • 44. evaluating advertising effectiveness cont'd 2 Changes in sales and market share hard to measure accurately because of.. ..external influences: ●Competitor's actions ●Government actions ●Changes in economy ●Changes in consumer preference ●Weather changes By using “benchmarks” (past sales figures vs. current sales) and advertising expenditures data, marketers make gross estimates of effects of campaign on sales and market share. 44
  • 45. Who Develops the Advertising Campaign? By one person or a team either inside firm's own marketing department or through external agency Small firms: one or two people inside, but depend greatly on local newspaper, or broadcast station for copywriting, artwork and advice about scheduling. Large firms: ●Either members of their own advertising department (copywriters; artists; media buyers; technical production coordinators) or .. ●External advertising agency (less dependence for wholesale and business products; but more reliance for consumer products) 45
  • 46. who develops the advertising campaign? cont'd 1 Advertising agencies often have good access to highly skilled experts in regards to: -research -legal advice -media They are also more objective toward a company's product. Advertising agencies normally receive 15% commission from media, makes it more affordable for advertisers. 46
  • 47. Public Relations Public Relations is a broad set of communication efforts to create and keep favorable relationships between an organization and its audiences. Audiences are referred to as ●Internal : employees, shareholders, suppliers ●External : consumers, government, media, investors PR can be used to promote: People Activities Products Ideas Places Countries 47
  • 48. public relations cont'd 1 PR can help a company to maintain image of ●Innovativeness ● Social responsibility ●Dependability This helps keeping up: ●Public awareness ● Employee morale ●Media attention Media often report on news stories that involve the general public/communities >>> PR helps maintaining positive public visibility 48
  • 49. public relations cont'd 2 Main PR print tools: Annual Reports To communicate corporate objectives, products, image, market share, stock values and direction to general audience and media. But other effective print tools are: Brochures; Newsletters; Company magazines; Logo's, stationery, business cards 49
  • 50. public relations cont'd 3 Other major PR tools include: -*Speeches (at Universities; Fairs, Conventions, on e.g. New technology; materials, sustainable production methods etc.) -*Event sponsorships (sport events, parades, shows) -Publicity (news stories published free in papers on corporate expansion, acquisitions, research, new product launches etc.) -News letters/releases (300 words press releases on new product launch or safety issues etc.) -Feature articles (3000 words script for specific publication) -Captioned photographs (picture with brief description explaining) -*Press conferences (meetings prepared to inform public through various media attention) * 'non-print' 50
  • 51. public relations cont'd 4 Event Sponsorships are special events paid for in part or in whole by a company. Is an effective way of drawing media attention often with low budgets. 51
  • 52. public relations cont'd 5 Press Conferences are meetings called to announce major (corporate) news events. Media personnel are invited by letter and are supplied with video/audio tapes to broadcast stations and editorials to newspapers in the hope for publicity. Must be newsworthy, well-timed, interesting, accurate for coverage. Advantages: -credibility (better public perception than advertisements) -news value (often very informational, extended coverage) -word-of-mouth communications -perception of being endorsed by media -low cost compared to advertisement Disadvantage: 52 -Media distribution not controllable.
  • 53. Evaluating Public Relations Effectiveness Research necessary in form of: Environmental Monitoring identifies changes in public opinion affecting an organization. Public Relations Audit used to measure effects of a specific PR program and assess the company's image by public. Communications Audit is done when a content analysis of messages is conducted among audience members by readability study or readership survey. 53
  • 54. evaluating public relations effectiveness cont'd 1 Counting publicity exposure based PR is effective tool; how often and through which channel and where public exposed to messages. Clipping services often hired to track publicity. They clip and collect articles on company/product messages appeared in media. TV stations are requested to track dates and times of broadcasts, however not always complied. Tracking services costly >> does not measure attitudes. Surveys before and after media exposure can give best picture of PR results, as do sales figures! 54
  • 55. Dealing with Unfavorable Public Relations PR as a result of unexpected bad events such as: -Accidents (plane crash) -Unsafe operations (resulting in personnel injuries) -Controversial corporate actions (anti-competitive behavior) Can cause rapid downgrading of company image and products. Negative PR prevention include: ●Safety programs ● Inspections ● Quality Control procedures To lessen negative effects companies must have emergency action plans in place and be forthright instead of ignoring media as it can potentially wipe out millions of dollars spent on advertisements. 55
  • 56. Tasks 1: Read the “Microsoft Crafting” Case Then answer the following questions: 1. What major Public Relations tools does Microsoft use? 2. Who are the major audiences Microsoft wants to reach? 3. How should Microsoft evaluate the results ot its PR? 4. How do you think Microsoft should have used PR to communicate its views during the antitrust trial? Explain. 56
  • 57. Task 2: Watch the CBS video of “BP in the Gulf 2010” Then answer the following questions: 1. What was BP's initial response to public inquiries on the Gulf incident? 2. Do you believe BP's response was correct? Explain. 3. How could PR have helped in terms of damage control? 4. What are the worst negative implications for BP? 5. What should BP do next to recover the losses? 57
  • 58. Test Preparatory Questions-Answers: ,Q1. What is advertisement? "Paid non-personal communication about an organization and its products transmitted to a target audience through mass media." Q2. What does the acronym and concept of "AIDA" mean? A. Attract Attention & Awareness from the consumer B. Raise Interest from the Consumer C. Create Desire by showing Need Satisfaction D. Ask for Action. Q3. "Don't litter, keep our city glitter"; a. Who is most likely the sponsor behind this headline? b. What type of advertising would it fall under? a.Government b. Advocacy Advertisement. Q4. Toyota for strong communities"; what type of advertising would this fall under? Institutional Advertisement. Q5. "Switch to a flat panel TV, it will change your life for the better"; a. what type of advertisement is this? b. Who could be the sponsor of such a seemingly unclaimed advert? c. Why could this kind of advertsement be necessary? d. At what point would this be most appropriate (think product life-cycle). a. Pioneer Advertisement. b. An industry Association (makers of flat panel tv) c. To change consumer habits, move them from buying traditional products in a specific category to buying same product type in a new form/technological outfit, or just more of it. (Think of the "Drink Milk" ads) 58
  • 59. test preparatory questions cont'd 1 Q6. Most advertisements we see are what kind of advertisement: a. advocacy advertisement b. institutional advertisements c. competitive advertisement d. viral advertisement Q7. What does the acronym "IDCDDCEE" mean? b. What does it represent? 1. Identify a target audience 2. Define advertising objectives 3. Create an advertising platform 4. Determine advertising budget 5. Develop a media plan 6. Create an advertisement message 7. Execute the campaign 8. Evaluate effectiveness. The 8 steps in the advertsing campaign Q8. Which aspect is not an advertisement budget determiner? a. geographic size of the market b. distribution of the market c. firm's location d. product type Q9. a.What is the problem in an "Objective-and-Task" Advert-Appropr. Approach? a. hard to estimate all the cost to raise brand awareness or sales by a set percentage. b. What is the problem in an Arbitrary Approach? b. Over-or under-spending resulting in either under utilization of campaign potential or waste. Q10. What is a Media Plan and what purpose does it serve? The Media Plan specifies the media vehicles and schedule for running the ads. It determines who, 59 when, where and how often the target will be exposed to the advertising message.
  • 60. test preparatory questions cont'd 2 Q11. With "Reach" in a Media Plan we mean: a. aiming at the target market b. the largest amount of people in a market c. keeping the Media Plan within the reach of a budget. d. sending the right message to the highest % of actual/potential consumers in the target. Q12. "The key concept at the heart of Juenger’s fallacy — the thing which Meeker doesn’t seem to understand — is the fact that internet advertising in no way substitutes for TV or print advertising, no matter how often digital ad-sales people bring out their metrics of comparative CPMs." (Salmon, F.; 2013 blogs.reuters.com) "CPM" refers to: a. Consumer Packaging Method b. Cost Per Thousand exposed to a one page advertisement c. Consumer Price Marketing d. Cost Per Meter of celluloid used in film production. Q13. In 2012 most of the advertising dollars, globally were spent in ranking order: a. newspapers; tv; magazines; direct-mail c. tv; internet; newspapers; magazines b . internet; tv; newspapers; magazines d. tv; newspapers; internet; magazines 60
  • 61. test preparatory questions cont'd 3 ,Q14. "In 2011, I gave a talk to a group of online ad-sales people who were so full of the multitude of different ways that they could target and quantify their product, they literally no longer understood what brand advertising is, or why it exists, or why brands would be so foolish as to spend so much money on it. They’re quants, living in a world where something only has value insofar as it can be quantified, and where the unquantifiable therefore is perceived to have no value at all. In other words, they’re basically in the direct-marketing business: they’re the digital version of junk mail. As a result, just about every website in the world is in the business of delivering that digital junk mail to our computers and iPhones and iPads." (Salmon, F.; 2013 blogs.reuters.com) A. According to Felix Salmon at Reuters we can infer that internet marketing is the digital equivalent of which type of advertising? a. junk mail b. brand advertising c. reminder advertising d. direct-mail advertising B. What is the vehicle for conventional 'direct-mail advertisement'? The postal service. C. What is the vehicle for digital advertisement & marketing? The internet. D. How would you define “brand advertisement”? It is advertising with a strong emphasis on the company brand (logo and/or company name) also known as 61 Integrated Marketing Communications (IMC).
  • 62. test preparatory questions cont'd 4 Q15. "What’s more interesting is that digital advertising now accounts for almost a quarter of all media spending, 22 percent. That’s a huge milestone for a medium that accounted for only 14 percent three years ago." (Fitzgerald, T.; 2013 MediaLife Magazine) We can conclude above all from this statement and the bar graph displayed here that: a. internet-ad spending has surpassed print-ad spending in '12 b. magazine-ad spending is stable c. newspaper-ads are still favored d. online-ad spending is getting more expensive Q16. Which one is/are (an) Advertisement Objective: a. inform b. persuade e. all of the above c. remind d. increase sales f. Only a. and b. are correct 62
  • 63. test preparatory questions cont'd 5 Q17. How do we best measure an advertising campaign's effectiveness: a. by conducting marketing surveys b. by setting benchmarks c. by checking the competition's repsonse d. both a. and b. are correct Q18. When to evaluate / what to measure for Ad campaign effectiveness?: a. Before/Pretest buyer's sentiments b. During/Inquiries (coupons;forms etc.) to test change in buyer's perception. c. After/Posttesting; survey e.g. brand awareness or company's image d. All of the above Q19. Look at the picture below and indicate the five elements of print ads: h... a. ----------------------------------- i... b. ----------------------------------- s... c. ----------------------------------- s.... d. ----------------------------------- b.... e. ----------------------------------- 63
  • 64. test preparatory questions cont'd 6 Q20. What is not a non-print PR tools: a. press conferences b. circulating news letters c. speeches d. event sponsorships Q21. What external influences can affect an Advertisement Campaign? Circle all that apply: a. Government regulation c. Changes in economy . b. Wheather changes d. Changes in consumer preference Q22. Which one is an advantage of press-conferences as a PR tool? a. credibility b. paid for by the company c. Environmentally friendly d. public coverage Q23. What's the main PR print tool called? a. quarterly report b. annual report c. special report d. monthly report Q24. What is a disadvantage of publicity? a. it's expensive b. it draws negative attention c. it's uncontrollable d. it's credible Q25. What is meant by “publicity”? 64 a. advertisement b. public awareness c. free media coverage d. city life
  • 65. Additional Materials Recommended for Viewing: See “Marketing Videos” (for on-campus students only) A selection of relevant viewings by Advertising in a Nutshell™ Productions References: Jobber, D. and Ellis-Chadwick, F. (2013) “Principles and Practice of Marketing”, 7th. Edition, MC Graw-Hill Higher Education, United Kingdom. Nickels, W.G.; McHugh, J.M and McHugh, S.(1999) “Understanding Business”, 5th edition, Irwin/McGraw-Hill Companies, USA. Pride, W. and Ferrell, O.C. (2000) “Marketing Concepts and Strategies”, Houghton Mifflin Company, Boston, N.Y. www.ddrewdesign.com, accessed on 02/02/13 65