A Global Perspective

Philip Kotler
Gary Armstrong
Swee Hoon Ang
15 Siew Meng Leong
Chin Tiong Tan
Oliver Yau Hon-Ming

Advertising and PowerPoint slides adapted by

Oliver Yau Hon-Ming

Public Relations

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 Learning Objectives
After studying this chapter, you should be able to:
1. Define the roles of advertising in the promotion mix
2. Describe the major decisions involved in
developing an advertising program
3. Define the role of public relationships in the
promotion mix
4. Explain how companies use public relations to
communicate with and influence important publics

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 Chapter Outline

1. Advertising
2. Public Relations

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 Advertising

Developing Advertising Programs

• Setting advertising objectives
• Setting the advertising budget
• Developing advertising strategy
• Evaluating advertising campaigns

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Advertising
Developing Advertising Programs

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 Advertising
Setting Advertising Objectives
• An advertising objective is a specific
communication task to be accomplished with
a specific target audience during a specific
time.
• Objectives are classified by their primary
purpose
• Inform
• Persuade
• Remind
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 Advertising
Setting Advertising Objectives
• Informative advertising is used when
introducing a new product category; the
objective is to build primary demand.
• Comparative advertising directly or
indirectly compares the brand with one or
more other brands.

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 Advertising
Setting Advertising Objectives
• Persuasive advertising is important with
increased competition to build selective
demand.
• Reminder advertising is important with
mature products to help maintain customer
relationships and keep customers thinking
about the product.

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 Advertising

Setting the Advertising Budget

• Factors to consider when setting the budget
• Product life-cycle stage
• Market share

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Advertising
Setting the Advertising Budget
• Product life-cycle stage
• New products require larger budgets
• Mature brands require lower budgets

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Advertising
Setting the Advertising Budget
• Market share
• Building or taking market share requires larger
budgets.
• Markets with heavy competition or high
advertising clutter require larger budgets.
• Undifferentiated brands require larger budgets.

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 Advertising

Developing the Advertising Strategy

• Advertising strategy is the strategy by which
the company accomplishes its advertising
objectives.
• It consists of two major elements
• Creating the advertising message
• Selecting the advertising media

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 Advertising

Creating the Advertising Message

• Advertisements need to break through the
disorder.
• Gain attention.
• Communicate well.

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 Advertising
Creating the Advertising Message
• Advertisements need to be better planned,
more imaginative, more entertaining, and
more rewarding to consumers.

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Advertising
Creating the Advertising Message
• Steps in creating effective advertising
messages
1. Message strategy
2. Creative concept
3. Message execution

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Advertising
Creating the Advertising Message
• Message strategy is the general message
that will be communicated to consumers.
• Identifies consumer benefits

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Advertising
Creating the Advertising Message
• Creative concept is the idea that will bring
the message strategy to life and guide
specific appeals to be used in an advertising
campaign.
• Characteristics of the appeals include
• Meaningful
• Believable
• Distinctive

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Advertising
Creating the Advertising Message
• Message execution captures the target
market’s attention and interest, and can
include the following execution styles.
• Share of life • Personality symbol
• Lifestyle • Technical expertise
• Fantasy • Scientific evidence
• Mood or image • endorsement
• Musical
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Advertising
Selecting Advertising Media
• Major steps include
1. Deciding on reach-frequency-impact
2. Selecting media vehicles
3. Deciding on media timing

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 Advertising
Selecting Advertising Media
• 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.
• Impact is the qualitative value of a message
exposure through a given medium.
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 Advertising
Selecting Advertising Media
• Selecting media vehicles involves decisions
that present the media effectively and
efficiently to the target customer and must
consider the message’s
• Impact
• Effectiveness
• Cost

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 Advertising
Evaluating Advertising Effectiveness and
Return on Advertising Investment
• Types of evaluation include measuring
• Communication effects
• Sales and profit needs

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 Advertising
Evaluating Advertising Effectiveness and
Return on Advertising Investment
• Communication effects indicate whether the
ad and media are communicating the ad
message well and can be tested before or
after the ad runs.
• Sales and profit effects compare past sales
and profits with past expenditures or through
experiments.

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 Public Relations
• Public relations involves building good
relations with the company’s various publics
by obtaining favorable publicity, building up a
good corporate image, and handling or
heading off unfavorable rumors, stories, and
events.
• Public relations is used to promote product,
people, ideas, and activities.

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 Public Relations
• Public relations department functions include
• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development

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 Public Relations
• Press relations or press agency involves
the creation and placing of newsworthy
information to attract attention to a person,
product, or service.
• Product publicity involves publicizing
specific products.
• Public affairs involves building and
maintaining national or local community
relations.

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 Public Relations
• Lobbying involves building and maintaining
relations with legislators and government
officials to influence legislation and regulation.
• Investor relations involves maintaining
relationships with shareholders and others in
the financial community.
• Development involves public relations with
donors or members of nonprofit organizations
to gain financial or volunteer support.

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 Public Relations

The Role and Impact of Public Relations

• Lower cost than advertising
• Stronger impact on public awareness than
advertising

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 Major Public Relations Tools
• News • Public service
• Speeches activities

• Special events • Buzz marketing

• Written materials • Social networking

• Audiovisual • Mobile tour

materials marketing

• Corporate identity • Internet

materials

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