Advert Objectives&PR

7/30/2019 Advert Objectives&PR

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15 - 1Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall

i t s good and

good for you

Establishing Objectives andBudgeting for the Promotional

Program


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Advertising

Major Advertising Decisions


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AdvertisingSetting Advertising Objectives

An advertising objective is a specific communicationtask to be accomplished with a specific target

audience during a specific time


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Advertising

Informative advertising is used when introducing a new

product category; the objective is to build primary

demand

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

Setting Advertising Objectives


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Possible Advertising Objectives


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Advertising

Advertising strategy is the strategy by which

the company accomplishes its advertisingobjectives and consists of:

Creating advertising messages

Selecting advertising media

Developing Advertising Strategy


7/2615 - 7Copyright 2012 Pearson Education, Inc.

Publishing as Prentice Hall

Developing Advertising Strategy

Advertisements need to break through the clutter:

Gain attention

Communicate

well

Creating the Advertising Message
http://www.youtube.com/watch?v=uz6amk3P-hY




Advertising

Advertisements need to be better planned, more

imaginative, more entertaining, and morerewarding to consumers

Madison & Vinethe intersection of Madison

Avenue and Hollywoodrepresents the merging

of advertising and entertainment

Creating the Advertising Message




The DAGMAR Approach

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

DefineAdvertising

Goals forMeasuring

AdvertisingResults


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Attitude - Behavior

Relationship

Response Hierarchy

Problems

Response Hierarchy

Problems

Attitude - Behavior

Relationship

Sales Objectives

NeededInhibits Creativity

Costly andImpractical

Sales Objectives

Needed

Costly andImpractical

DAGMAR Difficulties


Legitimate Problems

Questionable Objections


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Advertising Through Media

Acting on Consumers

Advertising-Based View of Communications



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Balancing Objectives and Budgets


Dollars Goals

What were

willing and able

to spend

What we need toachieve our

objectives


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Marginal Analysis


Advertising / Promotion in $

Sales

in

$

Point A

Profit

Sales Gross Margin

Ad. Expenditure


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BASIC Principle of Marginal Analysis


Increase Spending

Decrease Spending

HoldSpending

If the increased cost is less than theincremental (marginal) return

If the increased cost is equal to theincremental (marginal) return.

If the increased cost is more than theincremental (marginal) return


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Advertising Sales/Response Functions


IncrementalSales

Advertising Expenditures

A. Concave-DownwardResponse Curve

IncrementalSales

Advertising Expenditures

Range A Range B Range C

B. S-Shaped ResponseFunction

High

Spending

Little

Effect

Initia

lSpending

Little

Effect

Midd

leLevel

High

Effect


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The Promotion Budget Is Set to Stay Within theSpending Limit

Top Management Sets the Spending LimitTop Management Sets the Spending Limit

Top-Down Budgeting



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Affordable

Method

Affordable

Method

CompetitiveParity

Percentageof Sales

Return on

Investment

ArbitraryAllocation

Percentageof Sales

CompetitiveParity

ArbitraryAllocation

Top-Down Budgeting Methods


TopManagement


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Total Budget Is Approved byTop Management

Cost of Activities are Budgeted

Activities to Achieve ObjectivesAre Planned

Promotional Objectives Are Set

Cost of Activities are Budgeted

Activities to Achieve ObjectivesAre Planned

Promotional Objectives Are Set

Bottom-Up Budgeting



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Estimate Costs Associated with Tasks(determine costs of advertising, promotions,

etc)

Determine Specific Tasks(advertise on market area television and radio

and local newspapers)

Establish Objectives(create awareness of new product among 20percent of target market)

Determine Specific Tasks(advertise on market area television and radio

and local newspapers)

Establish Objectives(create awareness of new product among 20percent of target market)

Objective and Task Method



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Ad Spending and Share of Voice


Decreasefind a

Defensible NicheIncrease to Defend

Attack With Large

SOV PremiumMaintain Modest

Spending PremiumCompetito

rs

Share

ofV

oice H

igh

Low

HighLowYour Share of Market


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Public relations involves building goodrelations with the companys variouspublics by obtaining favorable

publicity, building up a goodcorporate image, and handling orheading off unfavorable rumors,stories, and events

Public relations is used to promote

product, people, ideas, and activities

Public Relations


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Public relations department functions

include:

Press relations or press agency

Product publicity

Public affairs

Lobbying Investor relations

Development

Public Relations


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Public Relations

Press relations or press agency involvesthe creation and placing of newsworthyinformation to attract attention to a

person, product, or serviceProduct publicity involves publicizing

specific products

Public affairs involves building and

maintaining national or localcommunity relations


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Public Relations

Lobbying involves building andmaintaining relations with legislatorsand government officials to influence

legislation and regulation

Investor relations involves maintainingrelationships with shareholders andothers in the financial community

Development involves public relationswith donors or members of nonprofitorganizations to gain financial or

volunteer support


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Public Relations

Lower cost than advertising

Stronger impact on public awareness than

advertising

The Role and Impact of Public Relations


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15 - 26Copyright 2012 Pearson Education, Inc.

Public Relations

Major Public Relations Tools

News Speeches Special events

Writtenmaterials

Corporateidentity

materials

Public serviceactivities

Buzz marketingSocial

networkingInternet

Documents

Advert Objectives&PR