Chapter Fifteen

Advertising and Public Relations

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 Advertising

Advertising is any paid form of non-personal

presentation and promotion of ideas, goods, or
services by an identified sponsor

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 Major Advertising Decisions

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 Major Advertising Decisions
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
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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 Table 15.1
Possible Advertising Objectives

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 Major Advertising Decisions
Setting the Advertising Budget
• stage in the product life cycle
• Company strategy
– Market share
– Survival

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Chapter 15 - slide 6
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 Developing Advertising Strategy
• The strategy by which the company
accomplishes its advertising objectives. It
consists of two major elements:
– Creating advertising message
– Selecting advertising media

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 Developing Advertising
Strategy
Creating advertising message
• Message strategy
– Creative concept
– Meaningful
– Beleiviable
– Dinstinctive

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 Developing Advertising
Strategy
Creating advertising message
• Message Execution
– Slice of life
– Lifestyle
– Fantasy
– Mood or Image
– Musical
– Personality Symbol
– Technical Expertise
– Scientific Evidence
– Testimonial Evidence
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Chapter 15 - slide 9
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 Selecting the advertising media
• Deciding on reach, frequency and impact
• Choosing among major media types
• Selecting specific media vehicles
• Deciding on media timing

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Chapter 15 - slide 10
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 Evaluating advertising effectiveness and return
on advertising investment
• The net return on advertising investment
divided by the cost of the advertising
investment.

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Chapter 15 - slide 11
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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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Chapter 15 - slide 12
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 Functions

• 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 relationships.
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 Functions

• Lobbying: Building and maintaining

relationships with legislators and
government officials to influence legislation
and regulation.
• Investor relations: Maintaining relationships
with shareholders and others in the
financial community.

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 Functions

• Development: Working with donors or

members of nonprofit
• organizations to gain financial or volunteer
support.

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 Public Relations
Major Public Relations Tools

Written
News Speeches Special events
materials

Corporate
Audiovisual Public service
identity Buzz marketing
materials activities
materials

Social Mobile tour

networking marketing Internet

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Chapter 15 - slide 16
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 Personal Selling
The Role of the Sales Force

Personal selling is the interpersonal part of

the promotion mix and can include:
• Face-to-face communication
• Telephone communication
• Video or Web conferencing

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Chapter 15 - slide 17
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 Sales Promotion

Sales promotion refers to the short-term

incentives to encourage purchases or sales
of a product or service:
– Consumer promotions
– Trade promotions
– Sales force promotions

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Chapter 15 - slide 18
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