CHAPTER 2 Advertising And Public Relations

Topics: Advertising, Public relations, Mass media Pages: 8 (2927 words) Published: March 19, 2015
CHAPTER 2

Advertising and Public Relations

Objective Outline
1. Define the role of advertising in the promotion mix.
Advertising
2. Describe the major decisions involved in developing an advertising program. Setting Advertising Objectives
Setting the Advertising Budget
Developing Advertising Strategy
Evaluating Advertising Effectiveness and the Return on Advertising Investment Other Advertising Considerations
3. Define the role of public relations in the promotion mix. Public Relations
The Role and Impact of Public Relations
4. Explain how companies use public relations to communicate with their publics. Major Public Relations Tools
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Setting Advertising Objectives
The first step is to set advertising objectives. These objectives should be based on past decisions about the target market, positioning, and the marketing mix, which define the job that advertising must do in the total marketing program. The overall advertising objective is to help build customer relationships by communicating customer value. An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Advertising objectives can be classified by their primary purpose—to inform, persuade, or remind. Table 15.1 lists examples of each of these specific objectives. Informative advertising is used heavily when introducing a new-product category. In this case, the objective is to build primary demand.

Persuasive advertising becomes more important as competition increases. Here, the company’s objective is to build selective demand. Some persuasive advertising has become comparative advertising (or attack advertising), in which a company directly or indirectly compares its brand with one or more other brands.

Reminder advertising is important for mature products; it helps to maintain customer relationships and keep consumers thinking about the product.
Setting Advertising Budget
A brand’s advertising budget often depends on its stage in the product life cycle. For example, new products typically need relatively large advertising budgets to build awareness and gain consumer trial. In contrast, mature brands usually require lower budgets as a ratio to sales. Market share also impacts the amount of advertising needed: Because building market share or taking market share from competitors requires larger advertising spending than does simply maintaining current share, low-share brands usually need more advertising spending as a percentage of sales. Also, brands in a market with many competitors and high advertising clutter must be advertised more heavily to be noticed above the noise in Advertising budget Developing Advertising Strategy

Advertising strategy consists of two major elements: creating advertising messages and selecting Advertising media.
In the past, companies often viewed media planning as secondary to the message-creation process. The creative department first created good advertisements, and then the media department selected and purchased the best media for carrying those advertisements to desired target audiences. This often caused friction between creative’s and media planners.

Creating the Advertising Message
No matter how big the budget, advertising can succeed only if advertisements gain attention and communicate well. Good advertising messages are especially important in today’s costly and cluttered advertising environment.

Then their ads are sandwiched in with a clutter of other commercials, announcements, and network promotions, totalling nearly 20 minutes of nonprogram material per primetime hour with commercial breaks coming every six minutes on average. Such clutter in television and other ad media has created an increasingly hostile advertising environment. Merging Advertising and Entertainment

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