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ADVERTISING & PR

PRINCIPLES OF MARKETING
DEFINING ADVERTISING…

 Advertising is any paid, non-personal


communication, for promotion of ideas,
goods or services by an identified sponsor.

 Advertising mostly used by business, but


not-for-profit organizations & social
agencies also use advertising to promote
their “cause”.
Setting Advertising Objectives
• Advertising objectives: accomplishing a specific
communication tasks with a specific target
audience or audiences, during a specific time
period. Its purpose: Inform, Persuade, Remind.
Setting Advertising Objectives
•Possible Advertising objectives
Informative Advertising
Communicate customer Suggest new uses for a
value product
Build brand & company Inform market of a price
image change
Inform market about Describe available
new product services & support
Explain how a product Correct false impressions
works
Setting Advertising Objectives
•Possible Advertising objectives
Persuasive Advertising
Build brand preference Persuade consumers to
purchase more
Encourage brand Inform market of price
switching change
Change customer’s Describe available
product value services & support
perception
Setting Advertising Objectives
•Possible Advertising objectives
Reminder Advertising
Maintain customer Facilitate buying of
relationship product or service
Remind customer of Keep brand top of mind
product need

Q:
Why do established & well recognized brands advertise?
Developing Advertising Strategy
 Advertising strategy defines HOW a company
achieves its advertising objectives.
 It consists of two major elements:
1. Selecting the advertising media
2. Creating the advertising message

Q.
WHAT COMES FIRST: MEDIA SELECTION OR
DEVELOPING CREATIVE?
Developing Advertising Strategy
 Advertising media: vehicles through which
advertising messages are delivered to their
intended audiences.
1. Selecting specific media types:
• Traditional media: One-way communication
vehicles such as TV, Radio, Print, Cinema,
Outdoor.
• New media: Two-way, interactive involving
some form of computing e.g. Social Media,
Blogs, Online Newspapers, Digital Games &
Virtual Reality.
Developing Advertising Strategy

 Criteria for selecting traditional media:


• Reach: percentage of target market exposed
to the advertising
• Frequency: number of times on average
target consumer is exposed to the message.
• Impact: qualitative value of media exposure
(GRP, TARP)
Developing Advertising Strategy
 Criteria for selecting new media:
 Cost…
 Ease of use…
 Interactivity/ Networking…
 Relevance…
 Security…
Developing Advertising Strategy
 Creating the advertising message
 Message strategy sets the direction for the
advertising message.
1. Creative concept: the compelling “big
idea” for bringing the message to life.
2. Message execution: turning the big idea
into an actual execution to capture the
target audience.
Developing Advertising Strategy
 Some execution styles: Approach, tone,
words, & format
 Slice of life: normal people using product in
normal setting.
 Lifestyle: how a product fits user’s way of life.
 Mood or image: visual & sensory effects.
 Music: the jingle accompaniment.
 Personality symbol: character representing
product.
 Technical expertise: company proficiency
 Testimonial: endorsement by a likeable
source…
SLICE OF LIFE

LIFESTYLE
How Consumers React to Advertising

 Three popular hierarchical models of Advertising:


1. The AIDA Model
2. The Hierarchy-of-Effects Model
3. The Innovation-Adoption Model.
…all three Models are based on 3 parameters.
The Three Models…
Limitations of the Models
 All three Models are based on 3 parameters:
1. Cognition (Attention/ Awareness)
2. Affective (Moods, Feelings, Attitudes)
3. Behavioral (Action/ Manifestation – In
Marketing ‘Trial or Purchase’)

 The Big Debate: In human beings the three steps


do not always appear in a linear fashion.
 Researches show Awareness does not always
come before Liking & Liking does not always
come before Trial/ Purchase.
Limitations of the Models
 Another issue with LINEAR models:
 Linear models ignore effect of multiple
exposure, ALTHOUGH…
 Advertising effect is Cumulative – It adds up
over time.
 Quite unlike human thinking, all three models
are LINEAR in nature…
 …hence their validity is questionable!
Communicating Better:
ELABORATION LIKELIHOOD MODEL
The Alternative:
ELABORATION LIKELIHOOD MODEL
1. PERSUASIVE COMMUNICATIONS (ELABORATION)
RESULTS IN…
2. MOTIVATION & ABILITY TO PROCESS INFORMATION.
3. If Favorable Thoughts develop it results in a Positive
Attitudinal Change.
4. If Negative Thoughts develop it results in a Negative
Attitudinal Change.
5. If thoughts neither Negative nor Positive – need for more
persuasion is felt.
6. If ‘neither thought prevails’ MORE Persuasion is needed.
7. If still no effect NO CHANGE occurs.
8. If persuasion works TEMPORARY CHANGE may result.
PUBLIC RELATIONS
• Public relations (PR) means building good relations
with the company’s various publics by obtaining
favorable publicity, building up a good corporate
image and heading off unfavorable rumors, stories and
events.
• Activities involved in PR are press relations, product
publicity, public affairs, lobbying and managing
investor relations.
• PR can have a strong impact on public awareness and
results can be impressing. Some of the most important
tools of PR are the news, speeches, written materials,
audio-visual material and public services activities.