7/30/2019 Advert Objectives&PR
1/26
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
7/30/2019 Advert Objectives&PR
2/26
15 - 2Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Advertising
Major Advertising Decisions
7/30/2019 Advert Objectives&PR
3/26
15 - 3Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
AdvertisingSetting Advertising Objectives
An advertising objective is a specific communicationtask to be accomplished with a specific target
audience during a specific time
7/30/2019 Advert Objectives&PR
4/26
15 - 4Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
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
7/30/2019 Advert Objectives&PR
5/26
15 - 5Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Possible Advertising Objectives
7/30/2019 Advert Objectives&PR
6/26
15 - 6Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
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
7/30/2019 Advert Objectives&PR
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-hY7/30/2019 Advert Objectives&PR
8/2615 - 8Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
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
7/30/2019 Advert Objectives&PR
9/2615 - 9Copyright 2012 Pearson Education, Inc.
Publishing as Prentice Hall
The DAGMAR Approach
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DefineAdvertising
Goals forMeasuring
AdvertisingResults
7/30/2019 Advert Objectives&PR
10/26
15 - 10Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
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
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Legitimate Problems
Questionable Objections
7/30/2019 Advert Objectives&PR
11/26
15 - 11Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Advertising Through Media
Acting on Consumers
Advertising-Based View of Communications
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
7/30/2019 Advert Objectives&PR
12/26
15 - 12Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Balancing Objectives and Budgets
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Dollars Goals
What were
willing and able
to spend
What we need toachieve our
objectives
7/30/2019 Advert Objectives&PR
13/26
15 - 13Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Marginal Analysis
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Advertising / Promotion in $
Sales
in
$
Point A
Profit
Sales Gross Margin
Ad. Expenditure
7/30/2019 Advert Objectives&PR
14/26
15 - 14Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
BASIC Principle of Marginal Analysis
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
7/30/2019 Advert Objectives&PR
15/26
15 - 15Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Advertising Sales/Response Functions
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
7/30/2019 Advert Objectives&PR
16/26
15 - 16Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
The Promotion Budget Is Set to Stay Within theSpending Limit
Top Management Sets the Spending LimitTop Management Sets the Spending Limit
Top-Down Budgeting
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
7/30/2019 Advert Objectives&PR
17/26
15 - 17Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Affordable
Method
Affordable
Method
CompetitiveParity
Percentageof Sales
Return on
Investment
ArbitraryAllocation
Percentageof Sales
CompetitiveParity
ArbitraryAllocation
Top-Down Budgeting Methods
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
TopManagement
7/30/2019 Advert Objectives&PR
18/26
15 - 18Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
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
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
7/30/2019 Advert Objectives&PR
19/26
15 - 19Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
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
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
7/30/2019 Advert Objectives&PR
20/26
15 - 20Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Ad Spending and Share of Voice
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
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
7/30/2019 Advert Objectives&PR
21/26
15 - 21Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
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
7/30/2019 Advert Objectives&PR
22/26
15 - 22Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Public relations department functions
include:
Press relations or press agency
Product publicity
Public affairs
Lobbying Investor relations
Development
Public Relations
7/30/2019 Advert Objectives&PR
23/26
15 - 23Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
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
7/30/2019 Advert Objectives&PR
24/26
15 - 24Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
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
7/30/2019 Advert Objectives&PR
25/26
15 - 25Copyright 2012 Pearson Education, Inc.Publishing as Prentice Hall
Public Relations
Lower cost than advertising
Stronger impact on public awareness than
advertising
The Role and Impact of Public Relations
7/30/2019 Advert Objectives&PR
26/26
15 - 26Copyright 2012 Pearson Education, Inc.
Public Relations
Major Public Relations Tools
News Speeches Special events
Writtenmaterials
Corporateidentity
materials
Public serviceactivities
Buzz marketingSocial
networkingInternet