17 Advertising and Public Relations Dr Close Advertising

17 Advertising and Public Relations Dr. Close

"Advertising is salesmanship mass produced. No one would bother to use advertising if he could talk to all his prospects face-to-face. But he can't. " Morris Hite

Advertising Evolution& Effects Ad expenses have risen over the past decade (mature mkt). Ex: Arm & Hammer – U. S. spends more on ads than any other country – GM, P&G, and Time Warner each spend approx. $10 Million a DAY on U. S advertising!!!!!

Types of Ads • Institutional Advertising • Advocacy ads (a form of institutional ads): promote goodwill, organization/industry (AT&T Supports The Cyclists of the Tour de GA race) Sunkist & Subway/Jared Support Healthy Lifestlyes…

Bud & Advocacy Advertising

Types of Ads • Product Ads – promote a specific item (bamboo steamer) – Pioneering: inform/build primary demand for item (intro stage; net phone, and what else? ? )

Types of Ads • Type of competitive ad: comparative ads – Specific brand comparison of a specific attribute (Pain relievers and Caffeine) – The Cola Wars! The Beer Wars! (Less carbs than Bud!) – Research must support (Listerine and plaque) vs. Any differences?

Competitive Ads (Type of Product Ad) -Later in PLC -Selective demand -Build brand recall -Create affect 1. 6

Mockvertising

Priceless Brand Recall

Ad Appeals Affect • Feel good ads • Humor ads • Sexual-appeal ads • Love or Romance • Admiration • Courage • Fun • Pleasure • Environmentally Consciousness

Got Milk? . . . What Appeals Are Used? What Appeals Should Sell Milk?

Not-So Warm (yet effective) Appeals Scare the consumer into action • Fear-appeal ads Change behavior by inducing anxiety • Anxiety ads

Ad Objectives and Execution Persuade • Reason-why ads • Hard-sell ads • Comparison ads • Information-only ads • Testimonial ads • Demonstration ads • Advertorials • Infomercials

Ad Objectives and Execution Transform consumption experiences • Transformational ads Situate the brand socially • Slice-of-life ads • Product-brand placement/ Short Internet Films Define the brand image • Image ads

Ad Objectives and Execution Promote brand recall • Repetition ads • Slogan and jingle ads Link a key attribute to the brand name • Unique selling proposition (USP) ads

"Great designers seldom make great advertising men, because they get overcome by the beauty of the picture - and forget that merchandise must be sold. " – James Randolph Adams

Ad Issues • Ad allowances: producer discount for retailer ads (ex: Wal-Mart circular) • Cooperative ads: firms at different levels share costs (Franchises and what else? ? ) • Horizontal cooperation: agreements at same level

Choosing A Medium (1) • 4 steps (interactive decisions): – Set Objectives: most specific; quantify time – Match media with market • Must find a way to reach market (Letterman or Oprah? ; Maxim or Vogue? ; My. Space or Facebook? ) • Problem with network/mainstream advertising: you pay for the whole audience

Choosing A Medium (2) • 4 steps (cont…) – Budgeting (most buys may use budget; Yellow Pages; local paper) – Selecting media: modern media allows targeting – Do you know the demographic/psychographic profile of readers of each of these vehicles? :

Where Would you Run this Honda Ad? Why?

Communication in Ads • Effectiveness – very difficult to measure – Testing improves performance (Dr. Pepper) – Recall of ads may be poor (Infiniti)

Ethics in Ads (1) • FTC Federal Trade Commission – Regulates deceptive ads • Wrong impression (Office Depot “low cost” PC: $269 but mandatory 3 year ‘Net made it over $1000) • May be true but still mislead: Kraft singles

Ethics in Ads (2) • FTC Federal Trade Commission (cont…) – Regulates unfair ads = may not be deceptive BUT>>> • “Cause injury” (kids, elderly, omit needed info…) • Unpopular with business (vague) – narrower; injury not avoidable • Walgreen’s: Advil as anti-inflammatory

Ethics in Ads (3) • FTC Federal Trade Commission (cont…) – Require support (Listerine) – Can order corrective ads (Listerine & Doan’s pills) – Some feel FTC is “big brother” (hair dryers)

Summary • • 3 promotions goals Promotion methods Ethics and Ads/Promotions Any questions? ?