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10.
“Think Different”
Apple
11.
“For all your 2000 body parts”
Lever 2000
12.
“Drivers Wanted”
Volkswagen
13.
“Eat More Chicken”
Chick-fil-A
14.
“Think outside the bun”
Taco Bell
15.
“M’m M’m Good”
Class Exercise 3: Advertising and PR in Marketing
This is recommended as a group activity. Student answers will vary.
In this chapter you learned about the role of advertising and public relations in marketing. Both are crucial
tools for marketing communication. In this exercise we will examine how firms use these tools.
Base your answers on the following scenario:
Matt and Ashley are two recent college graduates. They loved living in the small city where they attended
school but were having difficulty finding jobs in the area. They began brainstorming about products and
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CHAPTER QUIZ
1. A firm’s _____ include(s) employees, customers, suppliers, stockholders, the media, government
agencies, and society, and all of these groups may have public relations efforts directed toward
them.
a. stakeholders
b. shareholders
c. constituents
d. target markets
e. consumer jury
2. Advertising that promotes organizational images or ideas is __________ advertising.
a. defensive
b. product
c. competitive
d. comparative
e. institutional
3. A(n) ____________ audit is used to assess a company’s image among the public.
a. communications
4. The assumption that sales create advertising is a disadvantage of which approach to setting an
advertising budget?
a. Arbitrary
b. Objective-and-task
c. Match-competition
d. Percent-of-sales
e. Consumer-survey
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SEMESTER PROJECT
In this chapter, you learned how advertising and public relations can be used by marketing managers to
achieve strategic marketing goals. In this exercise, you will examine how advertising and public relations
tools can assist you in achieving the goals for your product, you.
Step 1: Setting an advertising objective for your product. What do you hope to achieve through your
advertising campaign?
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ANSWERS TO DISCUSSION AND REVIEW QUESTIONS
1. What is the difference between institutional and product advertising?
2. What is the difference between competitive advertising and comparative advertising?
Competitive advertising attempts to stimulate selective demand, which is demand for a specific brand.
3. What are the major steps in creating an advertising campaign?
The major steps in the creation of an advertising campaign are the following:
a. Identify and analyze an advertising target.
4. What is a target audience? How does a marketer analyze the target audience after identifying
it?
The target audience is the group of people toward whom the advertisements are aimed. After
5. Why is it necessary to define advertising objectives?
Advertising objectives must be defined to give the development of the campaign direction and
purpose.
6. What is an advertising platform and how is it used?
7. What factors affect the size of an advertising budget? What techniques are used to determine
an advertising budget?
The size of the geographic market and the distribution of the buyers within it influence the amount of
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ascertaining the tasks necessary to accomplish them. After the tasks are determined, their costs are
8. Describe the steps in developing a media plan.
First, the planner decides which general kinds of media to use and selects specific subclasses within
each medium. Then the planner selects the specific media vehicles to be used. Finally, the planner
creates a time schedule showing the dates and/or times the advertisements will run.
9. What is the function of copy in an advertising message?
Copy is used to attract readers’ attention and create interest. It also identifies a specific desire or
10. Discuss several ways to post test the effectiveness of advertising.
Post-test evaluation of advertising may be performed in several ways, and the specific dimensions to
be tested are determined by the advertising objectives. If the objectives are set in communication
11. What role does an advertising agency play in developing an advertising campaign?
If a firm uses an advertising agency, the development of the advertising campaign is usually a joint
12. What is public relations? Whom can an organization reach through public relations?
13. How do organizations use public relations tools? Give several examples that you have observed
recently.
Organizations can use public relations tools for a single purpose or for several purposes. Public
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14. Explain the problems and limitations associated with publicity-based public relations.
Limitations of publicity-based public relations arise from requirements of media personnel that the
15. In what ways is the effectiveness of public relations evaluated?
Organizations evaluate the effectiveness of public relations in a variety of ways. Environmental
monitoring, public relations audits, communications audits, and social audits are all research methods
16. What are some sources of negative public relations? How should an organization deal with
unfavorable public relations?
Although public relations is a planned activity, uncontrolled events can result in negative public
relations. Some sources of negative public relations can include news stories about unsafe products,
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ANSWERS TO APPLICATION QUESTIONS
1. An organization must define its objectives carefully when developing an advertising campaign.
Which of the following advertising objectives would be most useful for a company, and why?
a. The organization will spend $1 million to move from second in market share to market
leader.
b. The organization wants to increase sales from $1.2 million to $1.5 million this year to gain
the lead in market share.
c. The advertising objective is to gain as much market share as possible within the next 12
months.
d. The advertising objective is to increase sales by 15 percent.
Advertising objectives should be stated clearly, precisely, and in measurable terms. To provide
precision and measurability, advertising objectives should contain benchmarks and indicate how far
2. Copy, the verbal portion of advertising, is used to move readers through a persuasive sequence
called AIDA: attention, interest, desire, and action. To achieve this, some copywriters have
adopted guidelines for developing advertising copy. Select a print ad and identify how it (1)
identifies a specific problem, (2) recommends the product as the best solution to the problem,
(3) states the product’s advantages and benefits, (4) substantiates the ad’s claims, and (5) asks
the reader to take action.
3. Advertisers use several types of publicity mechanisms. Look through some recent newspapers
and magazines or use an Internet search engine and identify a news release, a feature article, or
a captioned photograph used to publicize a product. Describe the type of product.
Student answers will vary based on the mediums and product they choose.
4. Negative public relations can harm an organization’s marketing efforts if not dealt with
properly. Identify a company that was recently the target of negative public relations. Describe
the situation and discuss the company’s response. What did marketers at this company do well?
What, if anything, would you recommend that they change about their response?
5. Using the information provided in the question text, you have decided to advertise in the
college newspaper and a local free advertising paper that is distributed on campus. Create
an advertising platform to communicate the basic issues or selling points that you will
include in your advertising campaign.
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ANSWERS TO INTERNET EXERCISES
LEGO Company
LEGO Company has been making toys since 1932 and has become one of the most recognized brand
names in the toy industry. With the company motto “Only the best is good enough,” it is no surprise that
1. Which type of advertising is LEGO Company using on its website?
LEGO is using competitive advertising, which attempts to stimulate demand for a specific brand by
2. What target audience is LEGO attempting to reach through its website?
LEGO is actually attempting to reach two target audiences. The first target audience is Lego’s users –
3. Identify the advertising objectives LEGO is attempting to achieve through its website.
Although LEGO would obviously like to increase sales, its website is designed to increase product
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ANSWERS TO DEVELOPING YOUR MARKETING PLAN
The information obtained from these questions should assist you in developing various aspects of
1. What class and type of advertising would be most appropriate for your product?
Students’ answers will vary. They must consider whether institutional or product advertising would
2. Discuss the different methods for determining the advertising appropriation.
Determining advertising appropriation is not an easy task. It is the amount of money a marketer
allocates for advertising for a given time period. Many factors affect a firm’s decision about how
much to appropriate for advertising, including size of geographic market, distribution of buyers
3. Using Table 18.2 as a guide, evaluate the different types of media and determine which
would be most effective in meeting your promotional objectives (from Chapter 17).
4. What methods would you use to evaluate the effectiveness of your advertising campaign?
There are many different ways to evaluate advertising effectiveness. Basically, the three main ways of
5. Review Table 18.5 and discuss possible uses for publicity in your promotional plan
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COMMENTS ON THE CASES
VIDEO CASE 18.1: PEPSI TAKES DIFFERENT SPINS ON
ADVERTISING
Summary
For many years Pepsi has been an advertising guru, spending millions on a variety of media to get its
products in front of consumers. In 2010, Pepsi deviated from its 23–year practice of Super Bowl
advertisements and took the $20 million it would have spent on the Super Bowl and appropriated it to
fund the Pepsi Refresh Project. The Pepsi Refresh Project aims to promote the “social good” by
funding projects to make the world a better place. The company solicited consumer involvement in
the project. When Pepsi started running Super Bowl ads again in 2011, it continued working to
involve consumers by airing the winning ad from a consumer contest. By integrating consumers into
its promotional activities, Pepsi has been able to extend its reach and connect to consumers in
entirely new ways.
Questions for Discussion
1. How did Pepsi change its advertising focus when it began the Pepsi Refresh Project?
Pepsi had a constant presence at the Super Bowl for many years, but in 2010 the company
2. Evaluate the public relations project along with why Pepsi decided to resume Super Bowl
ads?
The Pepsi Refresh Project helped to generate positive public relations for the company and show
3. What does Pepsi gain in trying to encourage consumers to participate in its promotional
activities?
When consumers participate in Pepsi’s promotional activities, they become more involved with the
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CASE 18.2: TOYOTA USES ADVERTISING TO RESTORE TRUST
Summary
This case discusses what Toyota is doing to restore its image after the recall crisis. Toyota went from
being the top automobile manufacturer to struggling to repair its damaged reputation. Although it was
known for quality vehicles, Toyota’s rapid expansion caused it to compromise this quality. It was
criticized not only for its quality problems, but also for its slow reaction to consumer concerns and faulty
vehicles. The company began to implement safety changes and extensive advertising campaigns. In 2011
the National Highway Traffic Safety Administration ruled that many of the accidents were due to driver
area, exonerating Toyota somewhat. Signs now indicate that Toyota is on the rebound. The company
began advertising during the Super Bowl once again and has achieved success in advertising among
minorities. Toyota may well be on its way to repairing its reputation.
Questions for Discussion
1. How is Toyota using advertising to overcome negative publicity associated with a product
quality issue?
Companies can use advertisements to reassure consumers and reestablish trust with the company.
2. Why did Toyota have to pull advertising for its cars’ dependability, safety, and reliability
during a time when it was getting much public attention for safety recalls related to sudden
acceleration?
In the public’s eye Toyota automobiles were considered unsafe. Even non-recalled vehicles were
3. What can Toyota do going forward to gain positive publicity and restore its image?
Student answers may vary somewhat. Toyota should continue to communicate its dedication to safety