Principles of Marketing: An Asian

Perspective

Instructor Supplements
Created by Geoffrey da Silva

Advertising and Public Relations

2012 Principles of Marketing: An Asian Perspective

15

Chapter 15 Outline
15.1
15.2

Advertising
Public Relations

2012 Principles of Marketing: An Asian Perspective

Opening Case
IWANTJETSO: Advertising on the Go

Until about two years ago, IWANTJETSO was a

little-known Apple app among iPhone users in
Hong Kong. But now, largely thanks to the
successful promotion of Apples iPhones and its
other products, IWANTJETSO has grown to become
a major advertising platform player for companies
in Hong Kong that would like to provide mobile and
instant information to their shoppers.
5

2012 Principles of Marketing: An Asian Perspective

Opening Case

Comparisons between IWANTJETSO and Other Advertising Media

2012 Principles of Marketing: An Asian Perspective

15.1
Advertising

15.1

2012 Principles of Marketing: An Asian Perspective

15.1 Advertising

The Role of Advertising and Public Relations in the Promotions

Mix
Advertising

involves communicating the companys or brands value

proposition by using paid media to inform, persuade, and remind
consumers about the brand.
Public relations involves building good relations with various company
publicsfrom consumers and the general public to media, investor,
donor, and government publics.
As with all the promotion mix tools, advertising and public relations
must be blended into the overall integrated marketing communications
program

2012 Principles of Marketing: An Asian Perspective

15.1 Advertising

Advertising
Paid non-personal presentation and
promotion of ideas, goods, or services
by an identified sponsor.

2012 Principles of Marketing: An Asian Perspective

15.1 Advertising

Reviewing the Key Concepts

Define the role of advertising in the promotion mix.

10 2012 Principles of Marketing: An Asian Perspective

15.1 Advertising

Major Advertising Decisions

Marketing management must make four important decisions when
developing an advertising program (see Figure 15.1):
A.Setting advertising objectives,
B.Setting the advertising budget,
C.Developing an advertising strategy (message decisions and media
decisions), and
D.Evaluating advertising campaigns.

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15.1 Advertising

Major Advertising Decisions

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15.1 Advertising

Setting Advertising Objectives

Advertising

objectives should be based on past decisions about the

target market, positioning, and the marketing mix, 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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15.1 Advertising

Advertising Objectives
Advertising

objectives can be classified by primary purpose (Table

15.1):
Informative

advertising is used heavily when introducing a new

product category.
Persuasive

advertising becomes important as competition increases.

Here, the companys objective is to build selective demand.

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15.1 Advertising

Advertising Objectives
Comparative

advertising is directly or indirectly comparing one brand

with another.
Reminder

advertising is important for mature productsit helps to

maintain customer relationships and keep consumers thinking about
the product.

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15.1 Advertising

Possible Advertising Objectives

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15.1 Advertising

Comparative Advertising

In a classic comparative campaign, Avis

positioned itself against market-leading Hertz by
claiming, We try harder. (www.avis.com)
17 2012 Principles of Marketing: An Asian Perspective

15.1 Advertising

Advertising Budgeting

Details on budgeting were

covered in Chapter 14.

Specific factors to consider when

setting the budget include:

Stage of the PLC

Market share

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15.1 Advertising

Influences on budgeting
INTRODUCTION
GROWTH
MATURITY
DECLINE
PRODUCT LIFE
CYCLE
MARKET SHARE

19 2012 Principles of Marketing: An Asian Perspective

Budgeting

15.1 Advertising

Advertising Strategy
CREATE

MESSAGE

SELECT

MEDIA

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15.1 Advertising

Developing Advertising Strategy

Advertising

strategy consists of two major elements:

Creating advertising messages
Selecting advertising media

Advertisers

are orchestrating a closer harmony between their

messages and the media that deliver them.

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15.1 Advertising

Developing Advertising Strategy

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15.1 Advertising

Create message
Break through clutter
Gain attention
Communicate well

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15.1 Advertising

Creating the Advertising Message

Consumers

are exposed to as many as 3,000 to 5,000 commercial

messages every day.
Breaking

Through the Clutter. Ads are sandwiched in with a clutter

of other commercials, announcements, and network promotions,
totaling nearly 20 minutes of non-program material per prime-time
hour with commercial breaks coming every six minutes on average.

24 2012 Principles of Marketing: An Asian Perspective

15.1 Advertising

Creating the Advertising Message

Such

clutter in television and other ad media has created an

increasingly hostile advertising environment.
Just

to gain and hold attention, todays advertising messages must be

better planned, more imaginative, more entertaining, and more
emotionally engaging to consumers.

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15.1 Advertising

Advertising by Absolut

In its now classic campaign, Absolut Vodka developed a wonderful assortment of creative ads
that were tightly targeted to the audiences of the media in which they appeared.
26 2012 Principles of Marketing: An Asian Perspective

15.1 Advertising

Breaking through the Clutter

If advertising clutter bothers
some consumers, it also causes
big problems for advertisers.
They might pay $1 million or
more for 30 seconds of
advertising time during a
popular prime-time TV program
like the final episode of
American Idol, then have their
ads sandwiched in with a glut of
other commercials,
announcements, and network
promotions.

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15.1 Advertising

Impact of new media

Advertisers can no longer force-feed their ad

messages to consumers through traditional media, a
result of the rapid growth of digital video recorder
systems like TiVo.
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15.1 Advertising

Create Advertising Message

Create Advertising Message

Message
Strategy

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Creative
Concept

Message
Execution

15.1 Advertising

Message Strategy
The

first step in creating effective advertising messages is to plan a

message strategythe general message will be communicated to
consumers.
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 conceptor

big ideathat will bring the message strategy to life in a distinctive
and memorable way.

15.1 Advertising

Creative concept
getting the big idea

15.1 Advertising

Advertising Appeals
Advertising

appeals should have three characteristics:

They should be meaningful

Appeals must be believable

Appeals should be distinctive

15.1 Advertising

Advertising Appeals

For years, Timex has marketed itself as the

affordable watch that Takes a lickin and keeps
on tickin.

15.1 Advertising

Merging Advertising and Entertainment

To

break through the clutter, many marketers are now subscribing to

a new merging of advertising and entertainment dubbed Madison &
Vine.
The

aim of advertainment is to make ads themselves so entertaining,

or so useful, that people want to watch them.
Branded

entertainment (or brand integrations) involves making the

brand an inseparable part of some other form of entertainment.

15.1 Advertising

Brand integrations

Pontiac used The Apprentice to

announce a national early-order
program for its then-new Solstice
two-seat roadster. In all, the
company received more orders
during the promotion than it had
planned to build for the entire
year.

15.1 Advertising

Madison Vine:
Convergence of Advertising
and Entertainment

In todays cluttered advertising environment,

advertisers and agencies in the U.S. must find
new ways to engage ad-weary consumers with
more compelling messages. The answer?
Entertainment!

15.1 Advertising

Message execution
Message Execution. The advertiser
has to turn the big idea into an
actual ad execution that will capture
the target markets attention and
interest.

15.1 Advertising

Execution styles
Slice

of life

Lifestyle
Fantasy
Mood/Image
Musical
Personality
Technical

expertise

Scientific

evidence

Testimonial

15.1 Advertising

Execution styles
a)Slice

of life: This style shows one or more typical people using the
product in a normal setting.
b)Lifestyle: This style shows how a product fits in with a particular
lifestyle.
c)Fantasy: This style creates a fantasy around the product or its use.
For instance, many ads are built around dream themes.
d)Mood or image: This style builds a mood or image around the
product or service, such as beauty, love, or serenity.
e)Musical: This style shows people or cartoon characters singing about
the product.

15.1 Advertising

Execution styles
f)Personality

symbol: This style creates a character that represents the

product.
g)Technical expertise: This style shows the companys expertise in
making the product.
h)Scientific evidence: This style presents survey or scientific evidence
that the brand is better, or better liked than one or more other brands.
i)Testimonial evidence or endorsement: This style features a highly
believable or likable source endorsing the product.
The advertiser must choose a tone, words, and format for the ad.

15.1 Advertising

15.1 Advertising

The right tone in advertising

Procter

& Gamble always uses a positive tone: Its ads say something
very positive about its products.
P&G

usually avoids humor that might take attention away from the
message.
In

contrast, many advertisers now use edgy humor to break through

the commercial clutter.

15.1 Advertising

Using the right words

The

advertiser must use memorable and attention-getting words in

the ad.
For

example, rather than claiming simply that a BMW is a wellengineered automobile, BMW uses more creative and higher-impact
phrasing: The ultimate driving machine.
Hagen-Dazs

is more than a good-tasting luxury ice cream, it is

Our passport to indulgence: passion in a touch, perfection in a cup,
summer in a spoon, one perfect moment

15.1 Advertising

Using the right format

The

format elements make a difference in an ads impact as well as in

its cost.
A small change in ad design can make a big difference in its effect.
In a print ad, the illustration is the first thing the reader noticesit
must be strong enough to draw attention.
Next, the headline must effectively entice the right people to read
the copy.
Finally, the copythe main block of text in the admust be simple
but strong and convincing. Moreover, these three elements must
effectively work together to persuasively present customer value.

15.1 Advertising

Selecting Media

15.1 Advertising

Selecting Advertisting Media

The
1)
2)
3)
4)

major steps in advertising media selection are:

defining reach, frequency, and impact;
choosing among major media types;
selecting specific media vehicles; and
choosing media timing.

15.1 Advertising

Selecting Media

Decide
reach,
frequency,
impact

Choose
major
media type

Select
media
vehicle

Decide on
media
timing

15.1 Advertising

Selecting Media
REACH
FREQUENCY
IMPACT

15.1 Advertising

Defining 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.
The

advertiser must determine the desired media impactthe

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.

15.1 Advertising

Reach versus Impact of Media Choice

Advertisers should choose media that will

engage consumers rather than simply
reach them. A program may have a large
audience, but if the ad is irrelevant to its
audience, then it will not be as effective.

15.1 Advertising

Choose Media type

15.1 Advertising

Choosing Among Major Media Types

The

media planner 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.
Media planners must also decide between narrowcasting and shotgun
approaches.
More and more, advertisers are turning to alternative media in an
effort to get their message through.

15.1 Advertising

Profile of Major Media Types

15.1 Advertising

Alternative Media

Marketers have discovered a

dazzling array of alternative
media.

15.1 Advertising

Alternative Media

Another example of alternative

media Ben & Jerrys upsidedown bus ad rolling through
Manhattan.

15.1 Advertising

Media Multi-tasking
An important trend affecting
media selection is the rapid
growth in the number of media
multi-taskers, people who absorb
more than one medium at a time:

According to a U.S. study, 70 percent of media

users say that they try to absorb two or more
forms of media at once.

15.1 Advertising

Choose Media vehicle

15.1 Advertising

Selecting Specific Media Vehicles

The

media planner now must choose the best media vehiclesspecific

media within each general media type.
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
Editorial quality

15.1 Advertising

15.1 Advertising

15.1 Advertising

Media scheduling

15.1 Advertising

Choosing Media Timing

The

advertiser must decide how to schedule the advertising over the

course of a year.
Some
The

marketers do only seasonal advertising.

advertiser has to 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.

15.1 Advertising

Media Timing

Most companies advertise heavily before major

holidays, such as this Coca-Cola poster to mark
the Chinese New Year.

15.1 Advertising

Advertising effects
Communications
Sales/Profit

15.1 Advertising

Evaluating Advertising Effectiveness and Return on Advertising

Investment
Measuring

advertising effectiveness and the return on advertising

effectiveness has become a hot issue for most companies.
Measuring the communication effects of an ad or ad campaign tells
whether the ads and media are communicating the ad message well.
Sales and profits effects of advertising 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 advertising is to
compare past sales and profits with past advertising expenditures.

15.1 Advertising

Impact of advertising on sales and profit

Sales and profits are affected by

many factors, such as product
features, price, and availability.

15.1 Advertising

15.1 Advertising

Ads from Burberry can even occupy

almost the entire page of the screen

15.1 Advertising

Reviewing the Key Concept

Describe the major decisions involved in developing an advertising
program.

15.1 Advertising

Organizing for Advertising

15.1 Advertising

Organizing for Advertising

Different

companies organize in different ways to handle advertising.

In

small companies, advertising might be handled by some-one in the

sales department.
Large

companies set up advertising departments whose job it is to set

the advertising budget, work with the advertising agency, and
handle advertising not done by the agency.

15.1 Advertising

Organizing for Advertising

Advertising

agencies employ specialists who can often perform

advertising tasks better than the companys 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.

15.1 Advertising

Advertising Agencies

Ad agencies employ
specialists such as art
directors who can often
perform advertising tasks
better than the companys
own staff can. They also
bring an outside view to
solving the companys
problems.

15.1 Advertising

International Advertising Decisions

15.1 Advertising

International Advertising Decisions

International

advertisers face many complexities not 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 benefitslower advertising costs,
greater global advertising coordination, and a more consistent
worldwide image.
There are also drawbacksit ignores the fact that country markets
differ greatly in their cultures, demographics, and economic conditions.

15.1 Advertising

Standardized Advertising

Gillettes ads for its Gillette for Women Venus razors

are almost identical worldwide, with only minor
adjustments to suit the local culture.

15.1 Advertising

Problems facing global advertisers

Global advertisers face several special problems:
a)Advertising media costs and availability differ vastly from country to
country.
b)Countries also differ in the extent to which they regulate advertising
practices.
c)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

15.2
Public Relations

15.2

78 2012 Principles of Marketing: An Asian Perspective

15.2 Public Relations

Building good relationships with the companys 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 products, people, places, ideas,

activities, organizations, and even nations.
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15.2 Public Relations

Public Relations functions

PRESS
RELEASES

PRODUCT
PUBLICITY

PUBLIC
AFFAIRS

LOBBYING

INVESTOR
RELATIONS

DEVELOPMENT

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15.2 Public Relations

Public Relations functions

Public relations departments may perform any or all of the following
functions:
a)Press

relations or press agency: Creating and placing newsworthy

information in the news media to attract attention to a person, product,
or service.
b)Product

publicity: Publicizing specific products.

c)Public

affairs: Building and maintaining national or local community

relations.
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15.2 Public Relations

Public Relations functions

d)Lobbying:

Building and maintaining relations with legislators and

government officials to influence legislation and regulation.
e)Investor

relations: Maintaining relationships with shareholders and

others in the financial community.
f)Development:

Working with donors or members of nonprofit

organizations to gain financial or volunteer support.

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15.2 Public Relations

The role and impact of public relations

Public

relations can have a strong impact on public awareness at a

much lower cost than advertising can.
The

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

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.

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15.2 Public Relations

The role and impact of public relations

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.

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15.2 Public Relations

The role and impact of public relations

Chengdu Swellfun used public

relations to great effect when
it discovered a 600-year-old
underground distillery in its
own premises. It marketed
itself as the living relic of
the white liquor industry.
(www.
swellfun.com/tasteful/plane.h
tml)
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15.2 Public Relations

The role and impact of public relations

Located in the northern part of
Guangdong, Danxiashan, the Mountain of
Red Clouds, is a tourist area which has
become famous in part because of the
wise use of PR. On 2 August 2010, at the
34th World Heritage Meeting held in
Brasilia, Brazil, Danxiashan was listed as
a World National Heritage site, making it
the eighth such site in China. Danxiashan
had never been a popular tourist
destination, especially for those living in
the northern part of China. A tribute
should be paid to the Management
Committee of Danxiashan Scenic Zones
under the leadership of Huang Dawei for
his unceasing effort in PR for Danxiashan
at various stages of development.
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15.2 Public Relations

The rise in importance of PR

The birth of a brand is usually accomplished with [public relations], not advertising. Our
general rule is [PR] first, advertising second. [Public relations] is the nail, advertising the
hammer. [PR] creates the credentials that provide the credibility for advertising Anita
Roddick built the Body Shop into a major brand with no advertising at all. Instead, she
traveled the world on a relentless quest for publicity Until recently Starbucks Coffee didnt
spend a hill of beans on advertising, either. In 10 years, the company spent less than $10
million on advertising, a trivial amount for a brand that delivers annual sales of [in the
billions]. Wal-Mart Stores became the worlds largest retailer with very little advertising
On the Internet, Yahoo!, Amazon.com and Excite became powerhouse brands with virtually
no advertising.

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15.2 Public Relations

Reviewing the Key Concepts

Define the role of public relations in the promotion mix.

88 2012 Principles of Marketing: An Asian Perspective

15.2 Public Relations

Major public relations tools

89 2012 Principles of Marketing: An Asian Perspective

15.2 Public Relations

Public Relations tools
News
Speeches
Special

events

Written

materials

AV

materials

Public

service

Corp.

identity

Buzz

creation

Web

sites

90 2012 Principles of Marketing: An Asian Perspective

15.2 Public Relations

Major Public Relations Tools
Public relations professionals use several tools.
PR professionals find or create favorable news about the company
and its products or people.
Speeches can also create product and company publicity.
Another common PR tool is special events, 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.

91 2012 Principles of Marketing: An Asian Perspective

15.2 Public Relations

Major Public Relations Tools
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.

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15.2 Public Relations

Using the Web as a PR Tool

93 2012 Principles of Marketing: An Asian Perspective

15.2 Public Relations

The Web as a PR Tool
The

Web is also an increasingly important PR channel, Web sites,

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

companys Web site can be a good public relations vehicle. Web

sites can also be ideal for handling crisis situations.

94 2012 Principles of Marketing: An Asian Perspective

15.2 Public Relations

Reviewing the Key Concepts
Explain how companies use public relations to communicate with their
publics.

95 2012 Principles of Marketing: An Asian Perspective

Thank
you