Chapter 17 ♦ Advertising and Public Relations 17-1
CHAPTER 17 Advertising and Public Relations
CHAPTER FEATURES
Chapter Features
Key Points
✓ Marketing & You
Students are given a survey to determine their perceptions of
television advertising.
✓ Application Exercise
Students create ads for human products amended for animal uses.
Students do a dramatic crisis-management role play as they learn
how managers deal effectively with the press.
✓ Company Clips
With only a small advertising budget, the Vans marketing team must
develop partnerships with its advertisers and use tours and events to
spread the Vans culture.
USING THIS MANUAL
Chapter seventeen includes five learning outcomes that help students become more familiar with advertising and public
relations. The chapter outline provides detailed analysis of these learning outcomes, listing PowerPoint slides and
✓ Global Perspectives
With the rise of social media, there is a new type of celebrity
their videos.
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LEARNING OUTCOMES
1 Discuss the effects of advertising on market share and consumers
Advertising helps marketers increase or maintain brand awareness as well as market share. Typically, more is spent to
response to consumers’ changing needs or try to achieve an advantage over competing brands.
2 Identify the major types of advertising
Advertising is any form of impersonal, paid communication in which the sponsor or company is identified. The two
3 Discuss the creative decisions in developing an advertising campaign
Before any creative work can begin on an advertising campaign, it is important to determine what goals or objectives the
4 Describe media evaluation and selection techniques
5 Discuss the role of public relations in the promotional mix
Public relations is a vital part of a firm’s promotional mix. A company fosters good publicity to enhance its image and
Chapter 17 ♦ Advertising and Public Relations 17-3
CHAPTER OUTLINE
1 Discuss the effects of advertising on market share and
consumers
PowerPoint 17-4, 17-5
I. Effects of Advertising
Advertising is any form of impersonal, paid communication in which the
Review Question 1.1
PowerPoint 17-6
Advertising and Market
Share
A. Advertising and Market Share
1. New brands with a small market share tend to spend proportionately
more for advertising and sales promotion than those with a large
market share.
Review Question 1.2
PowerPoint 17-7
The Effects of Advertising
on Consumers
B. The Effects of Advertising on Consumers
1. According to estimates, Americans are exposed to hundreds of
advertisements a day from the various types of advertising media.
2. Attitudes and values are deeply rooted within an individual’s
Customer Experience
Pepsi’s New Look
Pepsi recently revealed its new logo – only the 11th change since 1898. Part of the
17-4 Chapter 17 ♦ Advertising and Public Relations
2 Identify the major types of advertising
PowerPoint 17-10, 17-11
Major Types of
Advertising
II. Major Types of Advertising
A. Institutional Advertising
PowerPoint 17-12
Product Advertising
Review Question 2.1
1. Institutional advertising promotes the organization as a whole and is
designed to establish, change, or maintain the corporation’s identity.
or impending legislation.
B. Product Advertising
1. Pioneering advertising is intended to stimulate primary demand for a
new product or product category.
2. The goal of competitive advertising is to influence demand for a
specific brand; it is often used when a product enters the growth phase
of the product life cycle.
3 Discuss the creative decisions in developing an advertising
campaign
III. Creative Decisions in Advertising
The advertising campaign is a series of related advertisements focusing on
a common theme, slogan, and set of advertising appeals that extends for a
defined time period.
PowerPoint 17-15, 17-16
1. Before any creative work can begin on an advertising campaign, it is
Chapter 17 ♦ Advertising and Public Relations 17-5
PowerPoint 17-17
PowerPoint 17–19, 17-20
Identify Product Benefits
2. Marketing research and intuition are usually used to list the perceived
2. The DAGMAR approach (Defining Advertising Goals for Measured
Advertising Results) is one method that stresses defining the objective
A. Identifying Product Benefits
1. Marketers strive to identify product benefits – not product attributes –
that will be the message to the consumers.
PowerPoint 17-21
Advertising Appeals
Review Question 3.1
B. Developing and Evaluating Advertising Appeals
a. After identifying product benefits, possible advertising appeals are
developed. An advertising appeal identifies a reason a person should
purchase a product.
b. The next step is to evaluate the proposed appeals. An appeal needs to
Review Question 3.2
C. Executing the Message
1. Message execution is the way the advertisement will be portrayed. In
general, the AIDA plan (see Chapter 16) is a good blueprint for
executing an advertising message.
of standardization vs. customization.
D. Postcampaign Evaluation
1. Marketers spend considerable amount of time studying advertising
effectiveness and its probable impact on sales, market share, or
awareness.
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4 Describe media evaluation and selection techniques
PowerPoint 17–26
Media Decisions in
Advertising
IV. Media Decisions in Advertising
A medium is the channel used to convey a message to the target market.
Media planning is the series of decisions advertisers make regarding the
selection and use of media to communicate the advertising message to the target
audience.
PowerPoint 17-27
Major Advertising Media
A. Media Types
Six major types of advertising media are available: newspapers, magazines,
radio, television, outdoor media, and the Internet. Marketers can use
alternative media to reach their target market.
PowerPoint 17-28
Newspapers
1. Newspaper advertising has the advantage of geographic flexibility and
timeliness. Newspapers reach a very broad mass market.
PowerPoint 17-31
Radio
Review Question 4.1
PowerPoint 17-32
Television
3. Radio can be directed to very specific audiences, has a large
out–of-home audience, has low unit and production costs, is timely,
and can have geographic flexibility.
4. Television can be divided into networks (ABC, NBC, CBS, and Fox),
independent stations, cable channels, and direct broadcast satellite
television.
PowerPoint 17-33
TV Advertising: Is Less
More?
PowerPoint 17-34
a. Cable television and direct broadcast satellite systems offer
consumers a multitude of channels devoted exclusively to target
audiences.
5. Outdoor, or out–of–home, advertising is a flexible, low-cost medium
Chapter 17 ♦ Advertising and Public Relations 17-7
PowerPoint 17-35
Internet
PowerPoint 17-38
Media Selection
Review Question 4.3
market.
6. The Internet has established itself as a solid advertising medium.
With ad revenues exceeding $26 billion annually, the Internet has
become a solid advertising medium. Online advertising continues to
grow at double-digit rates, well ahead of other advertising media.
a. Popular Internet sites and search engines generally sell
e. The popularity of blogs has made them an attractive medium for
marketing messages.
f. Many major broadcasters now participate in podcasting, which
are audio or video shows on computers.
B. Media Selection Considerations
1. The media mix is the combination of media to be used for a
promotional campaign. Media decisions are typically based on cost
per contact, reach, frequency, target audience considerations,
flexibility, noise level, and life span of the medium.
a. Cost per contact is the cost of reaching one member of the
target market. Cost per thousand (CPM) allows marketers to
compare relative costs of specific media. Cost per Click is a
PowerPoint 17–39
Quantitative Factors in
Media Selection
medium.
g. Life span means that messages can either quickly fade or persist
as tangible copy to be carefully studied.
2. Qualitative factors in media selection include:
i. Attention to the commercial and the program
PowerPoint 17-40
Media Scheduling
C. Media Scheduling
After selecting the media, a media schedule – which designates the
vehicles, the specific publications or programs, and the dates and times –
must be set. There are three basic types of media schedules:
1. With a continuous media schedule, advertising runs steadily
throughout the advertising period.
Global Perspectives
The Rise of Social Media Endorsers
With the rise of social media, there is a new type of celebrity endorsement—the YouTube
celebrity hired to endorse products on their videos. These stars are pulling in six figures
in endorsement deals and $20,000 for branded videos on YouTube.
5 Discuss the role of public relations in the promotional mix
PowerPoint 17-43
Public Relations
Review Question 5.1
V. Public Relations
Public relations evaluates public attitudes, identifies issues that may elicit public
concern, and executes programs to gain public understanding and acceptance.
Chapter 17 ♦ Advertising and Public Relations 17-9
Review Question 5.2
2. Press publicity: Publicizing specific products or services.
3. Corporate communication: Creating internal and external messages
to promote a positive image of the film or institution.
PowerPoint 17-45
Public Relations Tools
A. Major Public Relations Tools
1. New Product Publicity
2. Product Placement
Product placement is a strategy that involves getting a product,
Review Question 5.3
3. Consumer Education
4. Sponsorship
5. Web Sites
Web sites are an excellent vehicle to post news releases on products,
PowerPoint 17-47
B. Managing Unfavorable Publicity
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2. Firms should have plans for fast and accurate communication.
KEY TERMS
advergaming
continuous media schedule
media schedule
advertising
cooperative advertising
medium
advertising appeal
cost per click
pioneer advertising
advertising campaign
cost per contact
product advertising
advertising objective
cost per thousand (CPM)
product placement
advertising response function
crisis management
publicity
advocacy advertising
flighted media schedule
public relations
audience selectivity
frequency
pulsing media schedule
cause-related marketing
infomercial
reach
comparative advertising
institutional advertising
seasonal media schedule
competitive advertising
media mix
sponsorship
media planning
unique selling proposition
Suggested Homework:
• The end of each chapter contains numerous questions that can be assigned or used as the basis for longer
investigations into marketing.
REVIEW AND APPLICATIONS
1.1 Discuss the reasons why new brands with a smaller market share spend proportionately more on advertising
than brands with a larger market share.
Companies that market brands with a small market share tend to spend proportionately more for advertising than
1.2 Form a three-person team. Divide the responsibility for getting newspaper advertisements and menus for
several local restaurants. While you are at the restaurants to obtain copies of their menus, observe the
atmosphere and interview the manager to determine what he or she believes are the primary reasons people
chose to dine with them. Pool your information and develop a table comparing the restaurants in terms of
convenience of location, value for the money, food variety and quality, atmosphere, and so on. Rank the
restaurants in terms of their appeal to college students. Explain the basis of your rankings. What other
market segments would be attracted to the restaurants and why? Do the newspaper advertisements
emphasize the most effective appeal for a particular restaurant? Explain.
2.1 At what stage in a product’s life cycle are pioneering, competitive, and comparative advertising most likely
to occur? Give a current example of each type of advertising.
Chapter 17 ♦ Advertising and Public Relations 17–11
• Pioneering advertising is intended to stimulate primary demand for a new product or product category, at the
introductory stage of the life cycle.
3.1 What is an advertising appeal? Give some examples of advertising appeals you have observed recently in the
media.
Although students’ answers will vary, they should address some of these points: An advertising appeal represents a
3.2 Design a full-page magazine advertisement for a new brand of soft drink. The name of the new drink, as well
as package design, is at the discretion of the student. On a separate sheet, specify the benefits stressed or
appeals made in the advertisement.
Students’ answers will vary.
4.1 What are the advantages of radio advertising? Why is radio expanding as an advertising medium?
Students’ answers should address some of these points: In relationship to other media, radio advertising is quite
4.2 You are the advertising manager of a sailing magazine, and one of your biggest potential advertisers has
questioned your rates. Write the firm a letter explaining why you feel your audience selectivity is worth the
extra expense for advertisers.
Although students’ answers will vary, they should address some of these points: An advertiser can use a very
4.3 Identify an appropriate media mix for the following products: chewing tobacco, People magazine, Weed-
Eaters, foot odor killers, and “Drink responsibly” campaigns by beer brewers.
The options for chewing tobacco are limited by laws. Traditionally they have used print, outdoor and sports
and print.
4.4 How easy is it to find out about advertising options on the Internet? Go to Looksmart’s and Yahoo’s
advertiser pages (www.looksmart.com/aboutus/media and www.yahoo.com/info/advertising). What kind
of information do they require from you? Send an e-mail requesting information and compare what you
receive.
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5.1 How can advertising and publicity work together? Give an example.
Students’ answers should address some of these points: Each is a way of communicating information to potential
5.2 As the new public relations director for a sportswear company, you have been asked to set public relations
objectives for a new line of athletic shoes to be introduced to the teen market. Draft a memo outlining the
objectives you propose for the shoe’s introduction and your reasons for them.
Students’ answers should address some of these points: Public relations management must establish clearly defined
5.3 Review the newspapers in your area for one week. Try to review several and varied newspapers (local,
campus, cultural, countercultural, etc.) During this period, cut out all the event advertisements that list
sponsors. Once you have your collection, spread them out so you can see them all at once. Identify any
patterns or connections between the type of event and its sponsors. Identify companies that sponsor more
than one event. What do sponsors tell you about target markets? After analyzing the ads, write a brief
paragraph summarizing your discoveries.
Supplemental Exercise: Group Work
Review and Applications
Review and Application Question 1.2 lends itself well to group work. For this activity, divide the class into small