chapter 17
PRINCIPLES OF MARKETING 101
PROFESSOR NOURIJANIAN
TABLE OF CONTENTS
CH 17. ADVERTISING & PUBLIC RELATIONS
ADVERTISING & PUBLIC RELATIONS
Discussion Questions
What if the difference between institutional and product advertising?
What is the difference between competitive advertising and comparative advertising?
What are the major steps in creating an advertising campaign?
What is a target audience? How does the marketer analyze the target audience after identifying it?
What role does an advertising agency play in developing an advertising campaign?
How do organizations use public relations tools? Give examples of some observations?
What are some negative public relations?
DIFFERENT TYPES OF ADVERTISING
Definition of Advertising:
Advertising is a paid, non-personal communication transmitted to consumers through mass media, which includes television, radio, the internet, print media, direct mail, outdoor displays, and transit signs.
It is utilized by businesses and non-business organizations to reach large audiences.
Types of Advertising:
Institutional Advertising:
Focuses on promoting an organizational image, ideas, or causes rather than specific products.
Advocacy Advertising:
Centers on a company’s stance on public issues, such as taxation or sustainability.
Product Advertising:
Aims to promote features, uses, and benefits of a specific product or brand.
Types of Product Advertising:
Pioneer Advertising:
Stimulates demand for an entire product category rather than a specific brand, commonly used in the early stages of a product's lifecycle.
Competitive Advertising:
Emphasizes specific brand benefits to build demand.
Comparative Advertising:
Directly compares one brand against competitors.
Reminder Advertising:
Serves to remind consumers of established brand benefits.
Reinforcement Advertising:
Assures customers they made the right choice in purchasing this product.
Native Advertising:
A digital advertising format designed to blend seamlessly into the platform's content.
This form matches the look and feel of the surrounding media, including examples such as sponsored articles and in-feed social ads.
MAJOR STEPS IN DEVELOPING AN AD CAMPAIGN
Identify & Analyze Target Audience:
Define the specific group of consumers that the campaign is aimed at.
Analyze demographics, lifestyles, and media habits to tailor the messaging appropriately.
Define Advertising Objectives:
Specify clear, precise, measurable goals.
Example: "Increase awareness by 20% within 3 months."
Create Advertising Platform:
Outline key selling points or issues significant to the target audience.
This forms the foundation for messaging in the campaign.
Determine Advertising Appropriation (Budget):
Establish the budget for the campaign using various methods:
Objective-and-task:
Define objectives and tasks to determine the budget.
Percentage of sales:
Allocate a specific percentage of sales to budget.
Competitive matching:
Compare and match competitors' spending.
Arbitrary approach:
Budget set based on a set number, often without a solid foundation.
Develop Media Plan:
Select and schedule the appropriate media outlets.
Consider factors such as audience location, demographics, message content, and costs.
Create Advertising Message:
Develop both the copy (text) and artwork that align with:
Product features and benefits.
Characteristics of the target audience.
Media platform and campaign goals.
Execute the Campaign:
Coordinate activities and ensure implementation across chosen channels.
This requires careful planning and synchronization to ensure effectiveness.
Evaluate Advertising Effectiveness:
Utilize pre-tests (before launch) and post-tests (after launch) to assess the campaign.
Recognition Tests:
Measure recall of the ad.
Recall Tests:
Aided recall (providing clues) and unaided recall (no clues).
Responsibility in Developing Ad Campaigns
Advertising campaigns may be developed by either:
A Firm’s Own Advertising Department:
Preferred when direct control over messaging and execution is desired.
Often used by companies with in-house expertise and lower budgets.
An Advertising Agency:
Independent business that creates, plans, and manages campaigns for clients.
Agencies offer specialized knowledge, creative expertise, and media connections.
Collaboration:
Even if an agency is used, marketing managers provide guidance, approve strategies, and ensure alignment with company objectives.
DEFINE PUBLIC RELATIONS
Public Relations (PR):
Involves broad communication efforts aimed at creating and maintaining favorable relationships between an organization and its stakeholders.
PR focuses on attempts including:
Enhancing the public image of the company.
Building trust with consumers, employees, investors, and the community.
Managing reputation during positive and negative situations.
Unlike advertising, PR is often considered more credible because it is not paid media; it is classified as earned or shared coverage.
PUBLIC RELATIONS TOOLS
Common Tools Used by PR Professionals
Press Releases:
Announcements provided to media outlets.
Press Conferences:
Live events organized to share significant news or address concerns.
Feature Articles:
Extended, in-depth stories published in various media outlets.
Event Sponsorships:
Associating the brand with causes or high-visibility events to boost image.
Community Involvement Programs:
Activities showcasing social responsibility through volunteering or partnerships.
Digital & Social Media PR:
Engaging directly with audiences online.
Crisis Communication:
Managing public messaging during negative incidents or controversies.
ANALYSIS OF PUBLIC RELATIONS
Uses of PR:
Promoting Goodwill and Positive Brand Image:
Integral for fostering a positive relationship with the public.
Managing Crises and Reducing Negative Publicity:
Important for protecting the company’s reputation.
Supporting Product Launches or Major Company Initiatives:
Emphasizing new products or campaigns.
Communicating Company Values to Stakeholders:
Essential for maintaining transparency and trust.
Evaluating PR Effectiveness:
Media Coverage Analysis:
Examination of number of mentions, reach, and tone of coverage.
Social Media Metrics:
Tracking shares, comments, and sentiment analysis.
Public Opinion Surveys:
Assessing reputation before and after campaigns.
Sales/Lead Impact:
Looking at the indirect but measurable influence on overall brand performance.
CLASS EXERCISE
Objective:
Apply concepts from Integrated Marketing Communications (IMC), Advertising, and Public Relations by creating a short, cohesive campaign that integrates different promotion mix elements and utilizes PR tools to support brand messaging.
Time Required: 10–15 minutes
Format: Small groups (2–4 students) or individual work followed by a class discussion.
Scenario:
Your team has been tasked by a mid-sized company launching a new eco-friendly sports drink brand, GreenFuel.
Target Market: Health-conscious adults aged 18–35.
Key Differentiator: Contains 100% plant-based ingredients and utilizes compostable packaging.
Your Task:
Propose one advertising concept detailing the medium and the message.
Choose one PR activity/tool to support the launch.
Explain how word-of-mouth or viral marketing could amplify awareness.
Select one element of the promotion mix (sales promotion, personal selling, etc.) to complete the campaign.
SAMPLE ANSWERS
Advertising Concept (Medium & Message):
Medium: Social media ads (Instagram and TikTok) & streaming platform video spots.
Message: “Fuel your workout. Fuel the planet. GreenFuel – the drink that powers you and the planet.”
Visuals: Featuring vibrant, active lifestyle images paired with eco-friendly messaging.
PR Activity/Tool:
Host a press event at a local fitness center featuring fitness influencers and sustainability experts discussing eco-friendly nutrition.
Issue a press release to health and sustainability media outlets regarding the event.
Word-of-Mouth/Viral Marketing:
Launch a “#FuelGreenChallenge” encouraging users to share workout videos featuring GreenFuel, tagging friends to participate.
Create incentives such as prizes for the most creative video submissions to encourage sharing.
Promotion Mix Element:
Offer free product samples at gyms and fitness expos.
Coupled with digital coupons distributed via email and social media to encourage trial purchases.