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CHAPTER 18
Advertising and Public Relations
TEACHING RESOURCES QUICK REFERENCE GUIDE
Resource
Location
Purpose and Perspective
IRM, p. 399
Lecture Outline
IRM, p. 400
Discussion Starters
IRM, p. 409
Class Exercise
IRM, p. 410
Chapter Quiz
IRM, p. 412
Semester Project
IRM, p. 413
PURPOSE AND PERSPECTIVE
This chapter presents a detailed discussion of two promotion mix ingredients—advertising and public
relations. In the first part of the chapter, we focus on the nature and types of advertising. We also analyze
the major steps in developing an advertising campaign. Then, we discuss who is responsible for
Answers to Discussion and Review Questions
IRM, p. 414
Answers to Application Questions
IRM, p. 417
Answer to Internet Exercise
IRM, p. 418
Answers to Developing Your Marketing Plan
IRM, p. 419
Comments on the Cases
IRM, p. 420
Case 18.1
IRM, p. 420
Case 18.2
IRM, p. 421
Examination Questions: Essay
Testing CD
Examination Questions: Multiple-Choice
Testing CD
Examination Questions: True-False
Testing CD
PowerPoint Slides
400 Chapter 18: Advertising and Public Relations
LECTURE OUTLINE
I. The Nature and Types of Advertising
A. Advertising is a paid form of nonpersonal communication transmitted through mass media, such
as television, radio, the Internet, newspapers, magazines, direct mail, mass transit vehicles, and
outdoor displays.
1. Effective advertising can influence purchase behavior throughout a customer’s lifetime.
B. Types of Advertising
1. Institutional advertising promotes organizational images, ideas, and political issues.
a. It can be used to create or maintain an organizational image and it may aim to create a
2. Product advertising promotes the uses, features, and benefits of products.
a. Pioneer advertising focuses on stimulating demand for a product category (rather than a
specific brand) by informing potential customers about the product’s features, uses, and
benefits.
(1) Sometimes marketers will begin advertising a product before it hits the market.
3. Comparative advertising compares the sponsored brand with one or more identified brands
on the basis of one or more product characteristics.
a. Brands promoted through comparative advertisements often have low market shares and
are compared with competitors that have the highest market shares.
II. Developing an Advertising Campaign
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A. An advertising campaign involves designing a series of advertisements and placing them in
C. Identifying and Analyzing the Target Audience
1. The target audience is the group of people toward whom advertisements are aimed.
2. A target audience may include everyone in the firm’s target market, but at times, marketers
may wish to direct a campaign at only a portion of the target market.
D. Defining the Advertising Objectives
1. Because advertising objectives guide campaign development, advertisers should define their
advertising objectives carefully.
2. Advertising objectives should be stated in clear, precise, and measurable terms.
a. Precision and measurability allow advertisers to evaluate advertising success at the
campaign’s end in terms of whether or not the objectives have been met.
(1) To provide precision and measurability, advertising objectives should contain
benchmarks and indicate how far an advertiser wishes to move from the benchmark.
E. Creating the Advertising Platform
1. An advertising platform consists of the basic issues or selling points an advertiser wishes to
include in the advertising campaign.
2. A marketer’s advertising platform should consist of issues important to consumers.
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b. Research is the most effective method for determining the issues of an advertising
F. Determining the Advertising Appropriation
1. The advertising appropriation is the total amount of money a marketer allocates for
3. Various techniques are used to determine the advertising appropriation.
a. In the objective-and-task approach, marketers determine the objectives that a campaign
is to achieve and then attempt to list the tasks required to accomplish them. Once the
tasks have been determined, their costs are added to ascertain the appropriation needed to
G. Developing the Media Plan
1. Advertisers spend tremendous amounts on advertising. Total spending continues to increase,
and digital advertising is expected to grow rapidly.
2. To derive the maximum results from media expenditures, a marketer must develop an
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(2) Frequency is the number of times these targeted consumers are exposed to the
advertisements
4. Media planners must consider many factors, moving from broad decisions at the beginning to
very specific ones, when formulating the media plan.
a. They should analyze the location and demographic characteristics of people in the target
5. The rise in digital marketing is creating a dramatic shift for professional advertising agencies.
a. Traditional ad agencies face competition from amateur ad makers and crowdsourcing
companies.
6. The content of the message sometimes affects media choice.
a. Print media can be used more effective than broadcast media to present many issues or
7. Media planners should try to obtain the best coverage possible for each dollar spent.
a. There is no accurate way to compare the cost and impact of a television commercial with
8. Media scheduling decisions are affected by numerous factors. There are three general types
of media schedules.
a. Continuous advertisements run at a constant level with little variation.
H. Creating the Advertising Message
1. The basic content and form of an advertising message are influenced by several factors.
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a. A product’s features, uses, and benefits affect the content of the message.
d. An advertising campaign’s objectives and platform also affect the content and form of its
messages.
(1) If a firm’s advertising objectives involve large sales increases, the message may have
to be stated in hard-hitting, high-impact language and symbols.
e. Choice of media obviously influences the content and form of the message.
(1) Effective outdoor displays and short broadcast spot announcements require concise,
simple messages.
2. Messages for most advertisements depend on the use of copy and artwork.
a. Copy
(1) Copy is the written or verbal portion of the advertisement and may include headlines,
subheadlines, body copy, and signature. Not all advertising copy contains all of these
copy elements.
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b. Artwork
(1) Artwork consists of an advertisement’s illustration and layout.
I. Executing the Campaign
1. The execution of an advertising campaign requires an extensive amount of planning and
coordination.
J. Evaluating Advertising Effectiveness
1. There are a variety of ways to test the effectiveness of advertising.
a. Measuring achievement of advertising objectives
2. Advertising can be evaluated before, during, and after the campaign.
a. Evaluations performed before the campaign begins are called pretests.
(1) To pretest advertisements, marketers sometimes use a consumer jury, which is a
b. To measure advertising effectiveness during a campaign, marketers usually rely on
inquiries.
(1) In the initial stages of a campaign, an advertiser may use several advertisements
c. Evaluation of advertising effectiveness after the campaign is called a posttest.
(1) Advertising objectives often determine what kind of posttest is appropriate.
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remember them.
(3) Posttest methods based on memory include recognition and recall tests.
(a) In a recognition test, individual respondents are shown the actual advertisement
and asked whether they recognize it.
III. Who Develops the Advertising Campaign?
A. In very small firms, one or two individuals are responsible for performing advertising activities.
Usually, these individuals depend heavily on personnel at local newspapers and broadcast stations
for artwork, copywriting, and advice about scheduling media.
B. In certain large businesses, and especially large retail organizations, advertising departments or
C. When an organization uses an advertising agency, the development of the advertising campaign is
usually a joint effort of the agency and the organization.
1. The degree to which each participates in the campaign’s total development depends on the
2. An advertising agency can assist a business in several ways.
a. An agency, especially a large one, can supply the services of highly skilled specialists—
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IV. Public Relations
A. Public relations is a broad set of communication efforts used to create and maintain favorable
relationships between an organization and its stakeholders, both internal and external.
1. Public relations can be used to promote people, places, ideas, activities, and even countries.
B. Public Relations Tools
1. Companies use a variety of public relations tools, using written material and digital media, to
convey messages and create images.
2. Public relations materials such as brochures, newsletters, company magazines, new releases,
6. Publicity, which is a part of public relations, is communication in news-story form about an
organization, its products, or both, transmitted through a mass medium at no charge.
a. The most common publicity-based tool is the news release, or press release, which is
usually a single page of typewritten copy containing fewer than 300 words and describing
a company event or product.
C. Evaluating Public Relations Effectiveness
1. Because of the potential benefits of good public relations, it is essential that organizations
evaluate the effectiveness of their public relations campaigns.
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2. Research can be conducted to determine how well a firm is communicating its messages to
target audiences.
a. “Environmental monitoring” identifies changes in public opinion affecting an
3. One approach to measuring the effectiveness of publicity-based public relations is to count
the number of exposures in the media.
4. Although counting the number of media exposures does not reveal how many people have
D. Dealing with Unfavorable Public Relations
1. Many companies will have to deal with unplanned and unfavorable publicity resulting from
unsafe products, accidents, or controversial employee actions.
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DISCUSSION STARTERS
Discussion Starter 1: Dove Campaign for Real Beauty
ASK: How many of you feel that most beauty advertising conveys an impossible standard for women to
achieve?
Unilever, Dove’s parent company, conducted a study about women’s attitudes toward their own physical
appearances and found that less than two percent of women who responded thought they were
Discussion Starter 2: BMW Advertising Movies
ASK: How is the Internet driving new advertising concepts?
Students should be able to provide a variety of examples of how the Internet has transformed traditional
advertising.
For example, luxury brands such as BMW have embraced the Internet to display their products in unique
ways. Because the Internet allows for direct-to-consumer distribution of advertising messages, it allows
Discussion Starter 3: Pros and cons of using celebrities in advertisements
ASK: What are the pros and cons of building an advertising campaign around a celebrity?
Below is a link to one ad involving NFL star Peyton Manning and Justin Timberlake for Sony HD TVs.
Ask students to name other celebrities they have seen in ads and whether the result was positive or
410 Chapter 18: Advertising and Public Relations
CLASS EXERCISES
Class Exercise 1: Evaluating the Effectiveness of Advertisements
The objective of this exercise is to recognize the purpose and uses of advertising and to evaluate the
effectiveness of various advertisements.
You can present this exercise in various ways. One way is to bring in copies of magazines or newspapers.
A second way is to show the class videotapes of commercials that you supply. Either approach makes for
an interesting class discussion. Instructor flexibility is required because your students’ answers depend on
what medium you select.
Prompt for students:
Review the advertisements and complete the following:
1. Identify ads that represent:
a. Institutional advertising
b. Product advertising
Class Exercise 2: Advertising Slogans—How Memorable Are They?
The purpose of this exercise is to assess the effectiveness of advertising slogans regarding what they
communicate and how memorable they are. After discussing the answers, ask students to consider the
factors that help to make a slogan more easily recalled.
Identify the company or brand that is associated with each slogan.
Slogan
Company
1.
“We love to see you smile”
McDonald’s
2.
“Like a rock”
Chevrolet
3.
“Just push play”
Dodge Ram
4.
“Always a Low Price. Always”
Walmart
5.
“It’s the Cheesiest”
Kraft Macaroni & Cheese
6.
“We’ll leave the light on”
Motel 6
7.
“Maybe She’s Born with It”
Maybelline