Chapter 15

ADVERTISING AND PUBLIC RELATIONS

MARKETING STARTER: CHAPTER 15

SNICKERS: “You’re Not You When You’re Hungry”

CHAPTER OVERVIEW
In this chapter, we look at advertising and public relations. Advertising involves communicating
the company’s or brand’s value proposition by using paid media to inform, persuade, and remind
consumers. Public relations involves building good relations with various company publics—
from consumers and the general public to the media, investor, donor, and government publics.
As with all of the promotion mix tools, advertising and public relations must be blended into the
overall IMC program.

CHAPTER OBJECTIVES
1. Define the role of advertising in the promotion mix.
2. Describe the major decisions involved in developing an advertising program.
3. Define the role of public relations in the promotion mix.
4. Explain how companies use PR to communicate with their publics.

CHAPTER OUTLINE
p. 414 INTRODUCTION
PPT 15-2 p. 415
Does advertising really make a difference? In an industry
Photo: Snickers
characterized by constantly shifting promotional themes,
Snickers’ unexpectedly enduring “You’re Not You When
You’re Hungry” campaign has successfully engaged
customers, communicated the brand’s personality and
positioning, and moved Snickers to the top of the global
confectionary market.
The key to the Snickers campaign’s success lies in its
remarkable consistency. For more than ten years, Snickers
has stuck steadfastly to its simple but potent “You’re Not
You When You’re Hungry” message, and the brand’s use of
celebrities to make the point has been effective.
Building on the basic decades-old message that Snickers
satisfies, Snickers keeps the campaign fresh with an ever-

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 changing mix of clever message executions and innovative
media placements.
Today, Snickers’ now classic but still contemporary content
campaign has been more successful at meeting advertising
objectives than company officials ever imagined it could be.

p. 416 Define the role of advertising in the promotion mix. Learning Objective
PPT 15-4 1

PPT 15-5 ADVERTISING

p. 416
Advertising is any paid form of nonpersonal presentation Key Term:
and promotion of ideas, goods, or services by an identified Advertising
sponsor.

U.S. advertisers now spend in excess of $210 billion yearly

on advertising.
PPT 15-6
The four decisions to make when developing an advertising p. 417
program are (see Figure 15.1): Figure 15.1: Major
Advertising
1. Setting advertising objectives Decisions
2. Setting the advertising budget
3. Developing advertising strategy (message decision
and media decisions)
4. Evaluating advertising campaigns

Describe the major decisions involved in developing an

advertising program. Learning Objective
p. 417 2
PPT 15-7 Major Advertising Decisions

Setting Advertising Objectives p. 417

Key Term:
Advertising objectives should be based on past decisions Advertising
about the target market, positioning, and the marketing mix, objective
PPT 15-8 which define the job that advertising must do in the total
marketing program.

An advertising objective is a specific communication task

to be accomplished with a specific target audience during a
specific period of time.

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 Advertising objectives can be classified by primary purpose p. 418
(Table 15.1): Table 15.1: Possible
 Informative advertising is used heavily when Advertising
PPT 15-9 introducing a new product category. Objectives
 Persuasive advertising becomes important as
competition increases. Here, the company’s
objective is to build selective demand. p. 418
p. 418  Reminder advertising is important for mature Photo: Wendy’s
products—it helps to maintain customer relation-
ships and keep consumers thinking about the
product.

Setting the Advertising Budget

PPT 15-10 p. 419
The advertising budget is the dollars and other resources Key Term:
allocated to a product or a company advertising program. Advertising budget

PPT 15-11 Specific factors to consider when setting the budget include:
p. 419  Stage of the product life cycle (PLC)
 Market share
p. 421
 Competition
Key Term:
Advertising strategy
Developing Advertising Strategy

Advertising strategy consists of two major elements:

p. 421
PPT 15-12
 Creating advertising messages
 Selecting advertising media

Advertisers are orchestrating a closer harmony between

their messages and the media that deliver them.

Creating the Advertising Message and Brand Content

PPT 15-13
Americans are exposed to a cumulative 5.3 trillion online ad
impressions each year and a daily diet of 500 million
tweets, 432,000 hours of YouTube videos, 95 million
photos shared on Instagram, 5 million article pins on
Pinterest, and 4.75 billion pieces of shared content on
Facebook.

Breaking Through the Clutter. Ads are sandwiched in with

p. 422
a clutter of other commercials, announcements, and network
p. 422 Photo: Advertising
promotions, totaling nearly 20 minutes of non-program
Clutter
material per primetime hour with commercial breaks

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 coming every six minutes on average.

Such clutter in television and other ad media has created an

increasingly hostile advertising environment.

Just to gain and hold attention, today’s advertising messages

PPT 15-14 must be better planned, more imaginative, more entertain-
ing, and more emotionally engaging to consumers.

p. 422 Merging Advertising and Entertainment

To break through the clutter, many marketers are now p. 423

p. 423 subscribing to a new merging of advertising and Key Terms: Native
entertainment. advertising
p. 423
Branded entertainment (or brand integrations) involves Photo: The LEGO
making the brand an inseparable part of some other form of Movie
entertainment. Product placement is the most common form
of brand integration.
p. 423
Another form is called native advertising, which is
advertising or other brand-produced online content that
looks in form and function like the other natural content
surrounding it on a web or social media platform.
p. 423
PPT 15-15 Message and Content Strategy

The first step in creating effective advertising messages is to

plan a message strategy—the general message will be p. 424
PPT 15-16 communicated to consumers. Key Term:
creative concept
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.

Advertising appeals should have three characteristics:

1. Appeals should be meaningful.

p. 424 2. Appeals must be believable.
PPT 15-17 3. Appeals should be distinctive.

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 Message Execution. The advertiser has to turn the big idea p. 424
into an actual ad execution that will capture the target Ad: Cat
PPT 15-18 market’s attention and interest.

Execution styles include the following:

 Slice of life: This style shows one or more “typical”

p. 425 people using the product in a normal setting. p. 425
Key Term:
 Lifestyle: This style shows how a product fits in with Execution style
a particular lifestyle.
 Fantasy: This style creates a fantasy around the
product or its use. For instance, many ads are built p. 426
around dream themes. Ad: Rocket
Mortgage
 Mood or image: This style builds a mood or image
around the product or service, such as beauty, love,
or serenity.
 Musical: This style shows people or cartoon
characters singing about the product.
 Personality symbol: This style creates a character
that represents the product.
 Technical expertise: This style shows the company’s
expertise in making the product.
PPT 15-19
 Scientific evidence: This style presents survey or
scientific evidence that the brand is better, or better
liked than one or more other brands.
 Testimonial evidence or endorsement: This style
features a highly believable or likable source
endorsing the product.

The advertiser must choose the tone, words, and format for
the ad.

p. 426
Consumer-Generated Content
Taking advantage of today’s interactive technologies, many
companies are now tapping consumers for message ideas or
actual ads.

If done well, consumer-generated advertising efforts can

produce big benefits. p. 427
Photo: Boston
Marathon

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  For little expense, companies can collect new
creative ideas.
 These campaigns can boost consumer involvement
and get consumers talking and thinking about a
brand and its value to them.
p. 426
Selecting Advertising Media p. 426
PPT 15-20 Key Term:
The major steps in advertising media selection are: (1) Advertising media
defining reach, frequency, impact and engagement; (2)
choosing among major media types; (3) selecting specific
media vehicles; and (4) choosing media timing.
PPT 15-21
Defining Reach, Frequency, Impact, and Engagement.
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.

The advertiser must determine the desired media impact—

the qualitative value of a message exposure through a given
medium.

Typically, the advertiser wants to choose media that will

engage consumers rather than simply reach them. Measures
of engagement are difficult to find, though consumer p. 428
p. 427 expressions, such as a “Like” can be counted. Table 15.2: Profiles
PPT 15-22 of Major Media
Choosing Among Major Media Types. The media planner Types
has to know the reach, frequency, and impact of each major
media type. As summarized in Table 15.2, the major media
types are newspapers, television, direct mail, radio,
magazines, outdoor, and the internet. Each medium has
advantages and limitations.
p. 429
Media planners must also decide between narrowcasting Photo: Skittles
and the shotgun approach.

p. 430 More and more, advertisers are turning to alternative media

PPT 15-23 in an effort to get their message through.

Selecting Specific Media Vehicles. The media planner now

must choose the best media vehicles—specific media within
each general media type.

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 Media planners must compute the cost per 1,000 persons
reached by a vehicle.

The media planner must also consider the costs of

producing ads for different media.

The media planner must balance media costs against several

media effectiveness factors:

 Audience quality
 Audience engagement
p. 430  Editorial quality p. 430
PPT 15-24 Photo: Peeps
Deciding on Media Timing. The advertiser must decide
how to schedule the advertising over the course of a year.

Some marketers do only seasonal advertising. Most do some

seasonal advertising.

The advertiser has to choose the pattern of the ads.

Online and social media let advertisers create ads that

respond to events in real time.

p. 430 Evaluating Advertising Effectiveness and Return on

Advertising Investment

Measuring advertising effectiveness and the return on

advertising effectiveness has become a hot issue for most p. 430
PPT 15-25 companies. Key Term: Return
on advertising
Measuring the communication effects of an ad or ad investment
campaign tells whether the ads and media are communi-
cating the ad message well.
PPT 15-26
Sales and profit effects of advertising and other content are
often harder to measure. Sales and profits are affected by
many factors besides advertising—such as product features,
price, and availability.

One way to measure the sales and profit effects of

PPT 15-27 advertising is to compare past sales and profits with past
advertising expenditures.

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p. 432 Other Advertising Considerations

Organizing for Advertising

Different companies organize in different ways to handle

PPT 15-28 advertising.

In small companies, advertising might be handled by

someone in the sales department.
p. 432
Large companies set up advertising departments whose job Key Term:
it is to set the advertising budget, work with the advertising Advertising agency
agency, and handle advertising not done by the agency.
p. 432
Advertising agencies employ specialists who can often
perform advertising tasks better than the company’s own
staff.

Most large advertising agencies have the staff and resources

to handle all phases of an advertising campaign for its
clients, from creating a marketing plan to developing ad
campaigns and preparing, placing, and evaluating ads.

International Advertising Decisions

p. 433
International advertisers face many complexities not Ad: Chevrolet
encountered by domestic advertisers.

The most basic issue concerns the degree to which global

advertising should be adapted to the unique characteristics
of markets in various countries.

Standardization produces many benefits—lower advertising

costs, greater global advertising coordination, and a more
consistent worldwide image.

There are also drawbacks—standardization ignores the fact

that country markets differ greatly in their cultures,
demographics, and economic conditions.

Global advertisers face several special problems:

 Advertising media costs and availability differ vastly

from country to country.
 Countries also differ in the extent to which they

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 regulate advertising practices.
 Although advertisers may develop global strategies
to guide their overall advertising efforts, specific
advertising programs must usually be adapted to
meet local cultures and customers, media character-
istics, and advertising regulations.

p. 434 Define the role of public relations in the promotion mix. Learning Objective
PPT 15-29 3
PUBLIC RELATIONS

p. 434 Public relations is designed to build good relations with the

PPT 15-30 company’s various publics by obtaining favorable publicity, p. 434
building a positive corporate image, and managing Key Term: Public
unfavorable rumors, stories, and events. relations (PR)

Public relations departments may perform any or all of the

following functions:
PPT 15-31  Press relations or press agency: Creating and
placing newsworthy information in the news media
to attract attention to a person, product, or service.
 Product publicity: Publicizing specific products.
 Public affairs: Building and maintaining national or
local community relations.
PPT 15-32
 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.
 Development: Working with donors or members of
nonprofit organizations to gain financial or volunteer
support.

Public relations is used to promote products, people, places,

ideas, activities, organizations, and even nations.
p. 435 The Role and Impact of PR
PPT 15-33 p. 434
Public relations can make a strong impact on public aware- Photo: The power
ness at a much lower cost than advertising can. of public relations

The company does not pay for the space or time in the
media.

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 If the company develops an interesting story or event, it
could be picked up by several different media, having the
same effect as advertising that would cost millions of
dollars. And, it would have more credibility than
advertising.

Public relations is sometimes described as a marketing

stepchild because of its often limited and scattered use.

Advertising and public relations should work hand in hand

within an IMC program to build brands and customer
relationships.

Explain how companies use PR to communicate with

their publics.
p. 435
PPT 15-34 Learning Objective
Public relations professionals use several tools. 4
 PR professionals find or create favorable news about
the company and its products or people.
 Another common PR tool is special events,
PPT 15-35 including news conferences, press tours, or
educational programs designed to reach and interest
target publics.
 Public relations people also prepare written
materials to reach and influence their target markets.
These materials include annual reports, brochures,
articles, and company newsletters and magazines.
 Audiovisual materials, such as slide-and-sound
programs, DVDs, and online videos are being used
increasingly as communication tools.
 Corporate identity materials can also help create a
corporate identity that the public immediately
recognizes.
 Companies can improve public goodwill by
contributing money and time to public service
activities.

The web is also an increasingly important PR channel.

Websites, blogs, and social networks such as YouTube,
Facebook, and Twitter are providing interesting new ways
to reach more people.

A company’s website can be a good public relations vehicle

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and is ideal for handling crisis situations.

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