Priciples of Marketing

by Philip Kotler and Gary Armstrong

Chapter 15
Advertising and Public Relations

PEARSON
Advertising
 Advertising is any paid form of non personal
presentation and promotion of ideas, goods, or
services by an identified sponsor.
 Marketing management must make four
important decisions when developing an
advertising program: setting advertising
objectives, setting the advertising budget,
developing advertising strategy (message
decisions and media decisions), and evaluating
advertising campaigns.
 Setting Advertising Objectives
 An advertising objective is a specific communication task
to be accomplished with specific target audience during a
specific period of time. Advertising objectives can be classified
by their primary purpose─ to inform, persuade, or remind.
• Informative advertising It’s used heavily when introducing a
new-product category. In this case, the objective is to build
primary demand
• Reminder advertising It is important for mature products; it
helps to maintain customer relationships and keep consumers
thinking about the product
• Persuasive advertising It becomes more important as
competition increases. Here, the company’s objective is to
build selective demand.
Setting the Advertising Budget
• After determining its advertising objectives, the company
next sets its advertising budget─ The dollars and other
resources allocated to a product or a company advertising
program─ for each product.

• A brand’s advertising budget often depends on its stage in the

product life cycle.
• New products typically need relatively large advertising
budgets to build awareness and to gain consumer trial.

• Market share also impacts the amount of advertising needed:

• Because building the market or taking market share from
competitors requires larger advertising spending than does
simply maintaining current share, low-share brands usually
need more advertising spending as a percentage of sales.
 Developing Advertising Strategy

 Advertising strategy is the strategy by which the

company accomplishes its advertising objectives.
 It consist of two major elements: creating advertising
messages and selecting advertising media.

 Creating advertising message

Breaking Through the Clutter

• If all this advertising clutter bothers some consumers, it also causes

huge headaches for advertisers.
 Creating the Advertising Message
Merging Advertising and Entertainment
• To break through the clutter, many marketers have subscribed to a new
merging of advertising and entertainment, dubbed “Madison & Vine.”
Madison & Vine is a term has come to represent the merging of
advertising and entertainment in an effort to break through the clutter
and create new avenues for reaching customers with more engaging
messages.

Message Strategy
• developing an effective message strategy begins with identifying customer
benefits that can be used as advertising appeals. The advertiser must next
develop a compelling creative concept—or big idea—that will bring the
message strategy to life in a distinctive and memorable way.

Message Execution
• The approach, style, tone, words, and format used for executing an
advertising message. such as following:
 Slice of life
Testimonial evidence or endorsement Life style

Scientific evidence Fantasy

Technical expertise Mood or image

Personality symbolMusical

Consumer-Generated Messages
• Taking advantage of today’s interactive technologies, many
companies are now tapping consumers for message ideas or
actual ads.
Selecting Advertising Media
1.Determining Reach, Frequency, and 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. media impact—the qualitative value of
message exposure through a given medium.

2. Choosing among Major Media Types

• The major media types are television, the Internet, newspapers,
direct mail, magazines, radio, and outdoor.

3. Selecting Specific Media Vehicles

• In selecting specific media vehicles, media planners must balance media
costs First, the planner should evaluate the media vehicle’s audience
quality. Second, the media planner should consider audience engagement.
Third, the planner should assess the vehicle’s editorial quality.
 4. Deciding on Media Timing
• Most firms do some seasonal advertising. Finally, the
advertiser must choose the pattern of the ads. Continuity
means scheduling ads evenly within a given period. Pulsing
means scheduling ads unevenly over a given time period.
 Evaluating Advertising Effectiveness and the
Return on Advertising Investment
 Return on advertising investment is the net return on
advertising investment divided by the costs of the
advertising investment.
 Measuring the communication effects of an ad or ad
campaign tells whether the ads and media are
communicating the ad message well.
 However, sales and profit effects of advertising are often
much harder to measure.
Organizing for Advertising
 Advertising agency is a marketing services firm that
assists companies in planning, preparing, implementing,
and evaluating all or portions of their advertising
programs.
 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 campaigns and preparing, placing, and
evaluating ads and other brand content.
 International Advertising
Decisions
The most basic issue concerns the degree to which
global advertising should be adapted to the unique
characteristics of various country markets.

In recent years, the increased popularity of

online social networks and video sharing has
boosted the need for advertising standardization
for global brands.
Standardization produces many benefits—lower
advertising costs, greater global advertising
coordination, and a more consistent worldwide
image.
But it also has drawbacks. Most importantly, it
ignores the fact that country markets differ
greatly in their cultures, demographics, and
economic conditions.
Public Relations
 Public relations (PR) build good relations with
the company’s various publics by obtaining
favorable publicity; build up a good corporate
image; and handle or head off unfavorable
rumors, stories, and events.
 PR departments may perform any or all of the
following functions:

Press Creating and placing newsworthy information in

relations or the news media to attract attention to a person,
press agency product, or service.
Product
Publicizing specific products.
publicity

Public Building and maintaining national or local

affairs community relationships.

Building and maintaining relationships with

Lobbying legislators and government officials to influence
legislation and regulation.

Investor Maintaining relationships with shareholders and

relations others in the financial community.

Developm Working with donors or members of nonprofit

ent organizations to gain financial or volunteer support.
The Role and Impact of PR
 Public relations can have a strong impact on public
awareness at a much lower cost than advertising can.
 Rather, it pays for a staff to develop and circulate
information and manage events.
 The point is that PR should work hand in hand with
advertising within an integrated marketing
communications program to help build brands and
customer relationships.
Major Public Relations Tools

News

Public service
Special events
activities

PR Tools

Corporate
Written
identity
materials
materials
Audiovisual
materials
The End