Principles of Marketing
Eighteenth Edition, Global Edition
Chapter 15
Advertising and
Public Relations
Copyright © 2021 Pearson Education Ltd.
Learning Objectives
15.1 Define the role of advertising in the promotion mix.
15.2 Describe the major decisions involved in developing
an advertising program.
15.3 Define the role of public relations in the promotion mix.
15.4 Explain how companies use PR to communicate with
their publics.
Copyright © 2021 Pearson Education Ltd.
Learning Objective 1
Define the role of advertising in the promotion mix.
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Advertising
Advertising is any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an identified
sponsor.
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Developing Advertising Programs
Setting Setting the Developing Evaluating
advertising advertising advertising advertising
objectives budget strategy campaigns
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Developing Advertising Programs
[Link] advertising objectives
Advertising
objectives
Communication Sales
objectives objectives
Informative
Advertising Persuasive
Reminder
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Developing Advertising Programs
[Link] advertising objectives
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Developing Advertising Programs
2. Setting advertising budget
New products=> larger budgets
Product life-
cycle stage
Mature brands => lower budgets
Factors to
consider Building or taking market share => larger
budgets
Market Markets with heavy competition or high
share advertising clutter
=> larger budgets
Undifferentiated brands
=> larger budgets
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Developing Advertising Programs
3. Developing the Advertising Strategy
Advertising strategy
Creating advertising Selecting advertising
message media
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Developing Advertising Programs
3. Developing the Advertising Strategy
How to create an advertising message ?
Step 1. Message strategy
Step 2. Creative concept
Identifies consumer
benefits Step 3. Message execution
Meaningful
Believable Captures the target market’s
attention and interest.
Distinctive
Execution styles:
- Slice of life - Fantasy
- Lifestyle - Musical
- Mood or image
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Developing Advertising Programs
3. Developing the Advertising Strategy
Message execution is when the advertiser turns the big idea into an
actual ad execution that will capture the target market’s attention and
interest.
Message Execution Styles
• Slice of life • Personality symbol
• Lifestyle • Technical expertise
• Fantasy • Scientific evidence
• Mood or image • Testimonial or endorsement
• Musical
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Developing Advertising Programs
Create an advertising message
Distinctive advertising appeals: “A new way to brew”
GE sets its Café refrigerator apart as one that gives users an in- the-door filtered
hot water dispenser and Keurig® K-Cup® single-serve brewing system.
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Developing Advertising Programs
Create an advertising message
Testimonial evidence
Slice of life Scientific evidence or endorsement
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Developing Advertising Programs
Create an advertising message
Meaningful Ads
Creative and funny Ads
A nose is recreated on the side of
these Starbuck coffee cupsCopyright © 2021 Pearson Education Ltd.
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Developing Advertising Programs
3. Developing the Advertising Strategy
How to select the advertising media ?
Decide on
reach- Select media Decide on
frequency- vehicles media timing
impact
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Developing Advertising Programs
3. Developing the Advertising Strategy
How to select the advertising media ?
Decide on Select Decide on
reach- media media
frequency- vehicles timing
impact
• Reach is a measure of the percentage of people in the target market who are
exposed to the ad campaign during a given period of time.
• Frequency is a measure of how many times the average person in the target
market is exposed to the message.
• Impact is the qualitative value of a message exposure through a given medium.
Copyright © 2021 Pearson Education Ltd.
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Developing Advertising Programs
3. Developing the Advertising Strategy
How to select the advertising media ?
Decide on Select
reach- Decide on
frequency- media media timing
impact vehicles
Decisions present the media effectively and efficiently to the target customer
and must consider the message’s
• Impact
• Effectiveness
• Cost
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Developing Advertising Programs
3. Developing the Advertising Strategy
How to select the advertising media ?
Decide on Decide on
reach- Select media
frequency- vehicles media
impact timing
The planner must consider
• Seasonality
• Pattern of the advertising
• Continuity—scheduling within a given period
• Pulsing—scheduling unevenly within a given period
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Developing Advertising Programs
4. Evaluating advertising campaign
➢ Communication effects indicate whether the ad and media are
communicating the ad message well and can be tested before or
after the ad runs.
➢ Sales and profit effects compare past sales and profits with past
expenditures or through experiments.
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Other Advertising Considerations
Organizing for advertising
• Agency vs In-house
Marketing Agency
???
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Other Advertising Considerations
Benefits of hiring an advertising agency
The creative work done by the Lambesis
agency helped propel DASANI bottled
water from a brand that was struggling
to avoid commodity status to the
highest-ranked branded water in dollar
volume.
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Other Advertising Considerations
Organizing for advertising
• Agency vs in-house
Most large advertising agencies have the staff and resources to
handle all phases of an advertising campaign for their clients, from
creating a marketing plan to developing ad and content campaigns
and preparing, placing, and evaluating ads and content
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Other Advertising Considerations
Standardization
International
or
advertising decisions Localization
Oreo -Oreo’s latest “Open Up with
McDonald’s unifies its global advertising Oreo” runs in 50 global with a simple
universal message
under the familiar “i’m lovin’ it” theme “Open your heart to people who are
in all its 100-plus markets worldwide, different than you, and you'll discover
the similarities”.
here China Copyright © 2021 Pearson Education Ltd.
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Other Advertising Considerations
International advertising decisions
Standardization
Most international advertisers
“think globally but act locally.”
Solutions ???
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Learning Objective 3
Define the role of public relations in the promotion mix.
Copyright © 2021 Pearson Education Ltd.
Public Relations
Public relations involves building good relations with the company’s various
publics by obtaining favorable publicity, building up a good corporate image, and
handling or heading off unfavorable rumors, stories, and events.
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Public Relations
Building 1. A good corporate
image Promote
good
product,
relations 2. Handle people, ideas
with the unfavorable rumors, and activities
publics stories or events
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Public Relations
Public relations
functions
Press Product Public Investor
Lobbying Development
relations publicity affairs relations
• Press relations - creation and placing of newsworthy information to
attract attention to a person, product, or service.
• Product publicity - publicizing specific products.
• Public affairs - building and maintaining national or local community
relations.
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Public Relations
Public relations
functions
Press Product Public Investor
Lobbying Development
relations publicity affairs relations
• Lobbying - building and maintaining relations with legislators and
government officials to influence legislation and regulation.
• Investor relations - maintaining relationships with shareholders
and others in the financial community.
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Public Relations
Public relations
functions
Press Product Public Investor
Lobbying Development
relations publicity affairs relations
• Development - public relations with donors or members of
nonprofit organizations to gain financial or volunteer
support.
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Public Relations
Public
Advertising
relations
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Major Public Relations Tools
• News • Public service activities
• Speeches • Buzz marketing
• Special events • Social networking
• Written materials • Mobile tour marketing
• Internet
• Audiovisual materials
• Corporate identity materials
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