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ADVERTISING &
PUBLIC RELATIONS
PREPARED BY
UMAIR
THE WORLD OF ADVERTISING
ADVERTISING
“Advertising involves communicating the
company’s or brand’s value proposition by using paid media to
inform, persuade and remind consumers”
PUBLIC RELATIONS
Public relation involves building good relations with various company publics-from consumers and the general public to the media, investor, donor and government publics.
HERE’S THE STORY… .
15 minutes could save you 15% or more on car insurance!
Until about ten years ago, GEICO was a little known NICHER in the auto insurance industry. BUT NOW, thanks in large part to an industry changing advertising campaign featuring a LIKEABLE SPOKES-LIZARD and an enduring tagline, GEICO has grown to become a major industry player.
MIRACLES OF ADVERTISING
IN THE BEGINNING... GEICO was created in 1936
Initially, GEICO stood for Government Employees Insurance Company
COMPANY HISTORY Targeted customer o Govt. Employeeso Non-Commissioned
Military OfficersFor nearly 60 years GEICO
relied on: Direct mail advertising
Telephone
COMPANY HISTORY • 1994 GEICO took Decision of
Expansion.
• To increase its Customer Base GEICO hired Martin Agency an advertising firm.
• 1995, GEICO spent $10million on advertising and launch its First national TV, Radio and Print ads.
• In 1996, Warren Buffet bought the company and told the marketing group to “speed things up”
COMPANY TODAY… Fastest growing major auto insurer in the
U.S with growth of 8.9% in 2008. 23,000 Employees Associates. Provide 24 hours service, 7 days a week,
365 days a year. Geico has assets of over $24.4 billions.
WHAT SET GEICO’S ADVERTISING APARTAt the time, when Competitors were using serious and sentimental pitches, GEICO to make its advertising stand out decided to deliver its PUNCH LINE with HUMOR.The creative approach worked and sales began to climb.
GEICO ENTERED IN GECKO
Difficulties in pronouncing GEICO.
Use of GECKO ( Green Lizard)
Pop Culture Brand Icon. One of American’s top two
favorite Icon.
GEICO OFFERS... Life Insurance Auto Insurance Motorcycle Insurance Home and Renter’s
Insurance Boat Insurance Umbrella Insurance
ONLINE POLICY MANAGEMENT Get a rate quote for
your new car, cycle, boat, or home
Access your current policy
Make changes to your policy
Pay your premiums in full or installments
File a claim
MINI-CAMPAIGNSTo keep its advertising fresh &
entertaining, GEICO has added several new mini-campaigns.
Good news Caveman www . Goldengecko . Com
And many more!
GOOD NEWS Spots address the difficulties of getting drivers to switch insurance companies.
CAVEMANDesigned to bring younger buyers to the GEICO web site by showing them how easy it is to purchase insurance online.
WWW.GOLDENGECKO.COM
To appeal young drivers, GEICO launched an internet website at which it invites people to post their own 15 second ads.
RESTRICTIONS: The ads must use gecko. They must be funny.
WHY GO FOR GEICO? Low rates- competitive rates and
extensive discounts could save you 15% or more
Great Service- can be reached night or day 365 days a year by phone or online, deal directly with GEICO- not insurance agents, get claims settled quickly and fairly
Financial strength- will always have resources to pay your claims
“THE ADS ENTERTAIN,
DELIVER A MESSAGE AND
SATISFY A NEED”
.
REMEMBER...
HOW GOOD IS GEICO’S ADVERTISING?
Double digit profits in past 5-years.
Changed the face of the Auto Insurance Industry.
GEICO’S PUBLICATION
Geico News LettersGeico Direct MagazineGeico CommercialGeico CareersGeico Merchandising
GEICO’S MERCHANDISING STORES
GEICO’S ROLE IN THE COMMUNITY
Environmental Safety & Pollution PreventionGEICO is concerned about the environment and requires selected auto body repair shops to pass an environmental and safety training program.
GEICO GECKO® HITS THE NEW YORK FASHION SHOW SCENE NEW YORK CITY, FEBRUARY 16, 2010 – WHAT'S THE NEXT STEP FOR A BELOVED GECKO WHO FOR OVER 10 YEARS HAS CAPTIVATED AMERICA AND WAS EVEN VOTED AMERICA'S FAVORITE ADVERTISING ICON?FOR THE NEXT MONTH AT LEAST, HE'LL BE STEPPING ONTO THE STAGE OF THE NEW YORK CITY FASHION SCENE, SHOWING OFF HIS EVERYDAY WORK OUTFIT.
A Word from Our SponsorGecko-mania Sweeps Country
The GEICO Gecko has become a force to be reckoned with in the advertising world and was voted America's favorite advertising icon in 2005. Our small green friend has traveled the country spreading the good news about GEICO and has captivated audiences of all ages
15 minutes could save you 15% or more on car insurance!
ADVERTISING DECISIONS Setting Advertising Objectives Setting Advertising Budget Developing Advertising Strategy Evaluating Advertising campaigns
MAJOR ADVERTISING DECISIONS
OBJECTIVE SETTING
Communication Objectives.Sales Objectives.
BUDGET DECISIONS
Affordable Approach.Percent of Sales.Competitive Parity.Objective and Task.
ADVERTISING STRATEGY
MESSAGE DECISIONS:• M
essage Strategy.
• Message Execution.
MEDIA DECISIONS:• R
each, Frequency, Impact.
• Major Media Types.
• Specific Media Vehicles.
• Media Timings.
ADVERTISING EVALUATION
Communication Impact.Sales & Profit Impact.Return on Advertising.
1)SETTING ADVERTISING OBJECTIVES
ADVERTISING OBJECTIVES A specific communication task to
be accomplished with a specific target audience during a specific period of time.
SETTING ADVERTISING OBJECTIVESClassification of Advertising Objectives
Informative Advertising Persuasive Advertising Reminder Advertising
INFORMATIVE ADVERTISING Communicating customers value Telling the market about a new product Suggesting new uses for a product Explaining how the product works Describing available services Building a brand and company image
PERSUASIVE ADVERTISING Building brand preference Encouraging switching to your brand Changing customer’s perception of
product attributes Persuading customer to purchase now
REMINDER ADVERTISING Reminding consumer that product may
be needed in the near future Keeping it in consumer’s mind during
off-seasons Reminding consumer where to buy it
2)SETTING ADVERTISING
BUDGET
SETTING THE ADVERTISING BUDGET After determining the advertising objectives, the company next sets its advertising budget for each product.
“The dollars and other resources allocated to a product or company advertising programme”.
Advertising Budget
Advertising Budget mostly depends on;
1. Product Life Cycle Stage2. Market Share3. Competitors4. Product Differentiations5. Type of Product/Market
PRODUCT LIFE CYCLE STAGE
New product typically needs large advertising budget to build awareness and to gain consumer trial.
e.g. Olper’s flavored milk: Owsum Mature brand usually require lower
budgets as a ratio to sales. e.g. Medora.
MARKET SHARE Building the market or taking share
from competitors requires large advertising spending than simply maintaining current share.
Low-share brand usually needs more advertising spending as a percentage of sales.
COMPETITORSBrands in a market with many competitors and high advertising clutter must be advertised more heavily to be noticed above the noise in the market.
e.g. Nokia, Samsung & LG Mobiles
PRODUCT DIFFERENTIATION Undifferentiated brands may require heavy advertising
to set them apart. e.g. Mortein
In differentiated brands the advertising can only be used to point out the differences to consumers.
e.g. head&shoulders
TYPE OF PRODUCT/MARKET Business to consumers(B2C)
firms tend to spend too much on advertising.e.g. Nestle.
Business to business(B2B) firms generally underspend on advertising and rely too heavily on their sales forces to bring in orders.e.g. Paracitamol Medicines.
DEVELOPING ADVERTISING STRATEGY
The strategy by which the company accomplishes its advertising objectives.
It consists of two major elements1. Creating advertising message2. Selecting advertising media
ADVERTISING CLUTTER Advertising or marketing clutter refers
to the large volume of advertising messages that the average consumer is exposed to on a daily basis.
PROBLEMS CREATED BY AD CLUTTER
It bothers consumers.
It makes audience’ attention lost. It causes big problem for advertisers.
ADDING FUEL TO FIRE
MORE THAN 250 TV CHANNELS TO CHOOSE FROM
ADDING FUEL TO FIRE (CONT’D) More than 40 radio channels
BREAKING THROUGH THE CLUTTER CREATING ADVERTISEMENT MESSAGE
MADISON & VINE CREATIVE CONCEPT
MADISON AND VINE
MESSAGE STRATEGY
What is marketing strategy? To decide what general message will
be communicated to consumers.
What is the main purpose of advertising?
The purpose of advertising is to get customers to think about or react to the product in a certain way.
MESSAGE STRATEGY(CONT’D)
Message must be plain Straight Forward Advertising must be Appealed
something Meaningful Believable Must be distinctive from Competitor
MESSAGE EXECUTION STYLES
The approach, style, tone, words and format used for executing and
advertising message.
TYPES OF MESSAGE EXECUTION STYLE
Slice-of-Life Life Style Fantasy Mood or Image Musical Personality Symbol Technical Expertise Scientific Evidence Testimonial Evidence
EXECUTION STYLE Slice-of-Life This shows one or more persons using
the product in a normal setting. e.g.Nido
EXECUTION STYLE(CONT’D) Life Style: This shows how a product fits in with a
life style. e.g. Nokia
EXECUTION STYLE(CONT’D)Fantasy: This creates a fantasy about what might
happen in connection with the use of a product.
e.g. Dew , Red Bull
EXECUTION STYLE(CONT’D) Mood or Image: This builds a mood or image around the
product or service such as beauty, love or serenity.
Fair & Lovely Ponds
EXECUTION STYLE(CONT’D) Musical: This shows people or cartoon
characters singing about the product.
Mortein
EXECUTION STYLE(CONT’D) Personality symbol:This creates a character that represents the product. The character might be animated or real.Safeguard
EXECUTION STYLE(CONT’D) Technical Expertise: This style shows the company’s
expertise in making the product. HELIX
EXECUTION STYLE(CONT’D) Scientific evidence: This style shows survey or scientific
evidence that the brand is better than other brands.
Sunsilk anti-hair fall
EXECUTION STYLE(CONT’D) Testimonial evidence or
endorsement: This style features a highly
likeable source endorsing the product.
The ordinary people saying how much they like a given product.
Harpic
“IMPORTANT CONSIDERATIONS”ToneWordsFormat Elements
IllustrationHeadlinecopy
FORMAT ELEMENTS
illustration first thing readers
notice
FORMAT ELEMENTS
Headline:entice people to
read the copy.
FORMAT ELEMENTS
Copy: The main block of text
in the ad must be simple but strong and convincing.
SELECTING ADVERTISING MEDIA
ADVERTISING MEDIAAdvertising Media: The vehicles through which advertising
messages are delivered to their intended audience.
MAJOR STEPS IN ADVERTISING MEDIA SELECTION: Deciding on reach, frequency and
impact. Choosing among major media types. Selecting specific media vehicle. Deciding on media timing.
1. DECIDING ON REACH, FREQUENCY & IMPACTReach is a measure of percentage of people in the target market who are exposed to the ad campaign during a given period of time.
Reach is most important when launching new products, extensions of well-known brands, or infrequently purchased brands, or going after an undefined target market .e.g coolbank,olfruit etc.
DECIDING ON REACH, FREQUENCY AND IMPACT (CONT’D)
Frequency is a measure of how many times the average person in the target market is exposed to the message.Frequency is most important where there are strong competitors, a complex story to tell, high consumer resistance, or a frequent purchase-cycle e.g. ufone, sunsilk, surf excel etc.
DECIDING ON REACH, FREQUENCY AND IMPACT (CONT’D)Impact is the qualitative value of a message exposure through a given medium.For products that need to be demonstrated, messages on television may have more impact than messages on radio e.g. NokiaProducts for which consumers provide input on design or feature might be better promoted at a website than direct mail e.g. jones soda
2. CHOOSING AMONG MAJOR MEDIA TYPESMedia planners consider Target market media
Habits. Product characteristics. Message Characteristics. Cost. Shift to “Narrowcasting”
from “shotgun”. Media multitaskers
ADVERTISEMENT MEDIA Television Newspaper Direct mail Magazine Radio internet
PROFILES OF MAJOR MEDIA TYPESMediumTelevision
Newspaper
Direct mail
Radio
Magazines
Outdoor
Internet
Advantages Limitations Good mass marketing coverage; low cost High absolute cost; high clutter;
fleeting per Exposure; combine sight, sound and exposure; less audience selectivityMotion; appealing to the senses
Flexibility ;timeliness; good local market Short life; poor production quality; small
Coverage; broad acceptability; pass- along audiencebelievability
High audience selectivity; flexibility; no Relatively high per exposure; “junk mail”
Ad competition within the same medium; image Allows personalization
Good local acceptance; high geographic Audio only, fleeting exposure; low attention
And demographic selectivity; low cost (the half heard medium); fragmented audienceHigh geographic and demographic Long ad purchase lead time; high
cost; noSelectivity; credibility and prestige; high guarantee of position Quality reproduction; long life and goodPass-along readership
Flexibility; high repeat exposure; low Little audience selectivity; creativeCost, low message competition; good limitationsPositional selectivity
High selectivity; low cost; immediacy; Small demographic skewed audience; Interactive capabilities relatively low impact; audience
controls exposure
Do you think that Is there any alternative media for advertising
any product
ALTERNATIVE ADVERTISING OPTIONS Place AdvertisingMarketers use creative and unexpected ad placements to grab consumers’ attention such as where they work, play, and shop.BillboardsPublic Spaces
BILLBOARDS Billboards use colorful, digitally
produced graphics, backlighting, sounds, movement, and unusual even three dimensional images.
PUBLIC SPACES Advertisers are placing traditional
traditional TV and print ads in unconventional places such as sports arenas, office and hotel elevator, buses, stadiums, parking meters, mugs, balloons, automobiles.
ADS ON STADIUMS Stadium seats Billboards around
stadium
ADS ON STADIUMS
ADS ON BALLOONS
ADS ON BALLOONS
ADS ON FLOORS
ADS ON AUTOMOBILES
ALTERNATIVE ADVERTISING OPTIONS
Product placementProduct placement has expended from movies to all types of TV shows. Marketers pay a lot of money so that their products make cameo appearances in movies & on tv.oIn Game AdvertisementoCovert advertising
IN GAME ADVERTISEMENT In-game advertising (IGA) refers to the
use of computer and video games as a medium in which to deliver advertising
COVERT ADVERTISING Covert advertising, also known as
guerrilla advertising, is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand.
PINT OF PURCHASE There are so many ways to
communicate with consumers at (p-o-p).In store advertising includes ads on shopping carts, cart straps, aisles, shopping bags etc
SHOPPING BAGS
ADVERTISEMENT THROUGH SHIRTS
3. Selecting SPECIFIC MEDIA VEHICLES
Media Vehicle - a specific medium for the transmission of an advertiser's message
The media planner now must choose the best media vehicles on these bases:
Considerations for selecting Best media Vehicles: Favor those vehicles which have lower cost, for reaching most of
the target customer. LIKE: Today trend mobiles company is frequently using local newspaper & bill board for advertising.
Consider the costs of producing ‘ads’ for different media.
Examples: 1. For Candyland,Hoest sweets don’t
use higher cost vehicles.
2.For Land Cruiser, black beery, motorbike don’t use lower cost vehicles.
CONSIDERATIONS FOR SELECTING BEST MEDIA VEHICLES: Balance costs against several media
vehicle’s effectiveness factors: The planner should balance costs
against the media vehicle’s audience quality.
The media planner should consider audience attention or engagement.
The planner should assess the vehicle’s editorial quality.
4. DECIDING ON MEDIA TIMING The advertiser must also decide how to
schedule the advertising over the course of year.Some marketers do only seasonal advertising.
Pattern of ads:ContinuityPulsing
Continuity means scheduling ads evenly within a given period.
Pulsing means scheduling ads unevenly over a given time period
Continuity Continuous scheduling is a pattern of placing ads at a steady rate over a period of time. There may be short gaps at regular intervals and also long gaps. This pattern of advertising is prevalent in service and packaged goods that require continuous reinforcement on the audience for top of mind recollection at point of purchase. For instance, LUX soaps, sell all year, but more in summer months.
Advantages: Works as a reminder Covers the entire purchase cycle Cost efficiencies in the form of large media discounts Positioning advantages within media
PULSING Pulsing combines flighting
(flighting involves intermittent and irregular periods of advertising, alternating with shorter periods of no advertising at all.) and continuous scheduling by using a low advertising level all year round and heavy advertising during peak selling periods. For instance, under-arm deodorants, sell all year, but more in summer months.
Advantages: Covers different market situations
Evaluating Advertising EffectivenessAdvertising accountability and return on advertising investment have become hot issues for most companies.
Increasingly, top management is asking:
How do we know that we’re spending the right amount on advertising?
What return are we getting on our advertising investing?
Advertisers should regularly evaluate two types of advertising results;-
• The communication effects
• The sales and profit effects
THE COMMUNICATION EFFECTS
Measuring the communication effects of an ad tells whether the ad and media are communicating the ad message well.
Advertisement creators get so caught up in designing a creative, cool advertisement that they fail to effectively deliver a message that will facilitate the success of their marketing communications strategy.
it probably has a high level or at least a substantial level of creativity in it.
usually creative advertisements have two traits:
Originality
Appropriateness
It deals with how you deliver your message to the consumers
originality
If it isn't very distinguishable from competitive advertising, it won't be able to capture the consumer's attention. (Change in behavior)
The jazz musician Charlie Mingus once said of creativity and originality, "Creativity is more than just being different. Anybody can play weird, that's easy. What's hard is to be as simple as Bach. Making the simple complicated is commonplace, making the complicated simple, awesomely simple, that's creativity."
Appropriateness
it must be appropriate for solving the marketing objectives, which would probably include increasing sales and profits. If the advertisement fails to meet objectives it serves no purpose for both the marketing plan and the company.
Example:
Good example can be SAFEGUARD they targeted children by showing the cartoons (safeguard commander)
THE SALES AND PROFIT EFFECTS
Sales and profits effects of advertising are often much harder to measure.
One way to measure the sales and profits effects of advertising is to compare past sales and profits with past advertising expenditures.
Another way is through experiments.
For example
Coca-cola could vary the amount it spends on advertising in different market areas and measure the differences in the resulting sales and profit levels.
More complex experiments could be designed to include other variables, such as differences in the ads or media used.
RUNNING A COUPON.
One satisfyingly concrete way of tracking how many customers were exposed to advertising is to use coupons.
“Marketers are tracking all kind of data and they still can’t answer the basic questions”about advertising accountability, says a marketing analyst, “because they don’t have real models and metrics by which to make sense of it”
Thus, although the situation is improving as marketers seek more answers, managers often must rely on large doses of judgment along with quantitative analysis when assessing advertising performance.
OTHER ADVERTISING CONSIDERATIONS
In developing advertising strategy the company must address two questions:
How will the company organize its advertising function?
How will the company adapt its advertising strategies to the complexities of International Market?
These Considerations includes the following:
Other Advertising considerations
Organizing for Advertising International Advertising Decision
ORGANIZING FOR ADVERTISING
Sales DepartmentsIn
SMALL COMPANIES Advertising Departments
InLarger Companies
Most large companies use outside advertising agencies due to several advantages.
ADVERTISING AGENCY
Firm that Assists Companiesin Planning, Preparing,
Implementing and Evaluating Their
AdvertisingPrograms.
HISTORY OF ADVERTISING AGENCIES
Started in Mid-to-late 1800s by salespeople and brokers who worked for the media and received a commission for selling advertising space to companies.
HISTORY OF ADVERTISING AGENCIES (CONT’D)
As the time passed, the salespeople began to help customers prepare their ads.
Eventually, they formed agencies and grew closer to the advertisers than to the media.
HOW DOES AN ADVERTISING AGENCY WORK? Today agencies
employs specialists who can often perform advertising tasks better than the company's own staff can.
So today, even companies with strong advertising departments of their own use advertising agencies.
SOME HUGE ADVERTISING AGENCIES
Largest U.S.A company with annual gross revenue of more than $1.4 billion worldwide
McCann Erickson
Includes several large advertising, public relations & promotion agencies with combined worldwide revenue of almost $10.5 billion.
Omnicom Group
INTERNATIONAL ADVERTISING DECISIONS
International advertisers face many complexities not faced by domestic advertisers.
The most basic issues is:
Adaptation of Global Advertising
Adaptation of Global Advertising (Cont’d)
Some large advertisers have attempted to support their global brands with highly standardized worldwide advertising
JEEPJeep has created a worldwide image brand
image of ruggedness and reliability.
SPRITECoca Cola’s brand Sprite uses
standardized appeals to target the world’s youth.
GILLETTE’S VENUS RAZORS
Ads of Gillette’s Venus Razors are almost identical worldwide with only minor adjustments to suit the local culture.
STANDARDIZING Advantages of
Standardized Advertising.
Lower advertising cost Greater global
advertising coordination
Consistent worldwide image
Disadvantages of Standardized Advertising
Ignores the fact that country markets greatly differ in their
Cultures Demographics Economic
Conditions
“THINK GLOBALLY BUT ACT LOCALLY”International advertisers
develop global advertising strategies, that make their worldwide advertising efforts more efficient and consistent.
e.g. COCA COLA
SPECIAL GLOBAL PROBLEMS Global advertisers face several special
problems.
Advertising Media Costs & Availability
Regulation of Advertising Practices
FOR EXAMPLE
Alcoholic Products: Alcoholic products cannot be
advertised in Muslim Countries.
Food Ads are Banned From Kid’s TV In SWEDEN & Norway:
To play it safe McDonald’s advertises itself as a family restaurant in Sweden.
CHINA BAN ADVERTISING EMAILS China bans sending e-
mail for advertising purposes to people without their permission.
China also has restrictive censorship rules for TV and Radio advertising.
e.g. words “the best” are banned, as are ads that “violate social customs”
SPECIFIC ADVERTISING PROGRAMS MUST USUALLY BE ADAPTED TO MEET LOCAL CULTURES & CUSTOMS, MEDIA CHARACTERISTICS AND ADVERTISING REGULATIONS
PUBLIC RELATIONS
PUBLIC RELATIONS
“Building good relations with the company’s various publics by obtaining favorable publicity, building a good corporate image and handling or heading off unfavorable rumors”
PUBLIC RELATIONS
FUNCTIONS OF PR: Press relations or press
agency: “Creating and placing
newsworthy information in the news media”
Public affairs: “Building and maintaining
national or local community relations”
FUNCTIONS OF PR(CONT’D) Product publicity: “Publicizing specific
products”
Development: “Public relations with
donors or Members of not-for-profit organizations to gain support”
FUNCTIONS OF PR(CONT’D)
Lobbying: “Building relations with
legislators and government officials”
Investor relations: “Maintaining relationship
with shareholders and others in financial community”
ROLE AND IMPACT OF PUBLIC RELATIONS
Strong impact on public awareness at lower cost than advertising
Greater credibility than advertising
Publicity is often under used. Good public relations can be a powerful brand building tool
PR IS MARKETING STEPCHILD
Public relations sometimes described as a marketing stepchild because of its often limited use.
PR Department Deals with various publics like
stockholders, employees, legislators, the press etc.
BODY SHOP- FAMOUS BRAND Anita Roddick built the Body Shop into a
major brand of beauty products:“The birth of a brand is usually accomplished
with PR, not advertising. Our general rule is PR first, Advertising second.PR is the nail & Advertising is hammer”. (Anita)
PR creates the credentials that provide the credibility for advertising
News
Special Events
Written Materials
Public Service
Activities
Web Site
MAJOR PUBLIC RELATION TOOLS
Mobile Marketing
MAJOR PUBLIC RELATION TOOLSNews PR professionals find or
create favorable news about the company and its products or people.
HEC grading system for different institutions is quoted by the institutions in their admission advertisement.
Special Events News Conferences. Musical shows. Awareness Seminars.
MAJOR PUBLIC RELATION TOOLS
Written Materials Annual Reports Brochures Articles Magazines
Audiovisual Material
Films Slides & sounds
programs DVD’s Online Videos
MAJOR PUBLIC RELATION TOOLSCorporate Identity
Materials Logos Signs Stationary Business Cards Company Cars
Public Service Activities Companies can improve public goodwill by contributing money and time to public service activities.
Charity Shows Public Awareness Campaigns
Mobile MarketingTraveling promotional tours
that bring the brand to consumers.
e.g. Omore Advertising Vehicles
MAJOR PUBLIC RELATION TOOLS
Web Site People look to the Net for the information, not salesmanship and that’s the real opportunity for public relations
MAJOR PUBLIC RELATION TOOLS
