Chapter 18 - Advertising/PR

What is Advertising?

• Advertising is a form of PAID MEDIA!

• Advertising is a paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver

• The MOST VISIBLE form of IMC!

Ad campaign steps

• Identify target audience

  • Conduct research to identify target audience 

  • The info is used to set the tone and select the media

• Set advertising objectives

  • The objectives of an ad campaign are derived from the overall objectives of the marketing program

  • All advertising campaigns aim to achieve certain objectives - Inform, Persuade, Remind!

    • Informative Advertising

      • Used to create and build brand awareness

      • Typically used in the early stage of the product life cycle as you want to build your brand image

    • Persuasive Advertising

      • Motivate consumers to take action

      • Occurs generally in the growth and early maturity stages of the PLC

      • Might be used to reposition an established brand

    • Reminder Advertising

      • Used to remind or prompt repurchase

      • Usually for products in the maturity stage of their life cycle

• Determine the advertising budget

  • Setting the promotional budget is not easy, and advertising often is the largest single expenditure in the promotional budget

• Convey the message

  • The USP (unique selling proposition) concept conveys key benefits to the target audience

  • A good USP communicates the unique attributes of the product 

• Evaluate and select media

  • The ability of any one media outlet to reach a mass audience is declining due to the fragmentation of media and the proliferation of new media outlets

• Create advertisements

  • The type of medium determines the execution style

  • Creativity plays a major role in this stage

  • Creativity should not overshadow the message

  • The execution style must match the medium and objectives

  • Ads attempt to make maximum use of the medium’s ability to deliver the message

• Assess impact

  • Did you achieve your SMART objectives?

  • Firms can use pre-testing, tracking, and post-testing

  • Marketing metrics can be used

What is the FTC?

• Federal Trade Commission

• Primary agency for regulating ads

• Consumers can write to the FTC and complain!

Puffery:

Legal exaggeration of praise, stopping just short of deception, lavished on a product.

Focus of ads

• Product

  • Most ads are product focused

  • Inform, persuade, or remind about a product or service

• Institution

  • Inform, persuade, or remind about issues related to places, politics, industry, etc. 

• Public Service Announcement

  • Under FCC rules, broadcasters must devote a specific amount of free airtime to PSA

  • Used to raise awareness of public welfare issues

Ad objectives:

• Inform

• Persuade

• Remind

Using emotion vs. factual info when creating a message

• Informational Appeal

  • Helps consumers make purchase decisions by offering factual information

• Emotional Appeal

  • Aims to satisfy consumers’ emotional desires rather than their utilitarian needs

Role of media planner:

• Determine how a firm would use both mass and niche media in the same campaign

• Select the media

• Combination of media used

• Mass media (large audience) vs Niche media (more targeted)

Ad scheduling options

• Continuous

  • Runs steadily throughout the year

• Flighting

  • Implemented in spurts

• Pulsing

  • Combines continuous and flighting with a base schedule with increased intensity during certain periods

Ethics/Legal/Agencies Involved

• FTC

  • Primary U.S. government agency 

  • Enforces truth in advertising laws, defines deceptive and unfair advertising 

  • Has social media endorsements

• FCC

  • Federal Communications Commission

  • Regulates interstate and international communications by radio, tv, satellite, and cable

Different types of PR roles

• Consumers trust PR more than the brand’s own advertising

• Can include:

  • Media relations

  • Community relations

  • Corporate Social Responsibility

  • Crisis management

    • Be proactive and build a crisis plan

    • React to crisis quickly

    • Be open with communication

    • Be honest

  • Social Media Management

  • Content Development and Management

  • Investor Relations

Different types of promotions

• Coupons

  • Have to clip the coupon to get the good price

  • Stimulates demand

  • Allows for direct tracking of sales

  • Low redemption rates

  • High cost

• Product Discounts

  • Everyone gets the good price

  • Limited time 

• BOGO Deals

  • Purchase one and get another for free/cheap

  • Huge sales driver

  • Good for liquidating inventory 

• Loyalty Programs

  • Create loyalty

  • Encourage repurchase

  • High cost

• Samples

  • Encourage trial

  • Offer direct involvement

  • High cost

• Sweepstakes

  • Increase involvement with the product

  • Sales often decline after sweepstakes is over

• Contests

  • Increases consumer involvement

  • Generates excitement

  • Requires creativity

  • Must be monitored

• Rebates

  • Partial refund for customers after they buy a product

  • Consumers often fail to submit rebates

• Premiums

  • Builds goodwill

  • Increases perception of value

  • Consumers buy for premium, not for product

• Point of Purchase (POP) Displays

  • High visibility

  • Encourage brand trial

  • Can be costly

• Rebates

  • Stimulate demand

  • Increase value perception

  • Easily copied

• Product Placement

  • Displays products nontraditionally

  • Demonstrates product uses

  • Firm has little control over display