| Chapter 17: Advertising And Public Relations
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Work with these documents and activities to master chapter learning objectives.

Chapter 17: Advertising And Public Relations

  1. Describe the nature and types of advertising.

    Advertising is a paid form of nonpersonal communication transmitted to consumers through mass media such as television, radio, the Internet, newspapers, magazines, direct mail, outdoor displays, and signs on mass-transit vehicles. Both nonbusiness and business organizations use advertising. Institutional advertising promotes organizational images, ideas, and political issues. When a company promotes its position on a public issue such as taxation, institutional advertising is referred to as advocacy advertising. Product advertising promotes uses, features, and benefits of products. The two types of product advertising are pioneer advertising, which focuses on stimulating demand for a product category rather than a specific brand, and competitive advertising, which attempts to stimulate demand for a specific brand by indicating the brand’s features, uses, and advantages. To make direct product comparisons, marketers use comparative advertising, in which two or more brands are compared. Two other forms of competitive advertising are reminder advertising, which tells customers that an established brand is still around, and reinforcement advertising, which assures current users they have made the right brand choice.

  2. Explain the major steps in developing an advertising campaign.

    Although marketers may vary in how they develop advertising campaigns, they should follow a general pattern. First, they must identify and analyze the target audience, the group of people at whom advertisements are aimed. Second, they should establish what they want the campaign to accomplish by defining advertising objectives. Objectives should be clear, precise, and presented in measurable terms. Third, marketers must create the advertising platform, which contains basic issues to be presented in the campaign. Advertising platforms should consist of issues important to consumers. Fourth, advertisers must decide how much money to spend on the campaign; they arrive at this decision through the objective-and-task approach, percent-of-sales approach, competition-matching approach, or arbitrary approach.

    Advertisers then must develop a media plan by selecting and scheduling media to use in the campaign. Some of the factors affecting the media plan are location and demographic characteristics of the target audience, content of the message, and cost of the various media. The basic content and form of the advertising message are affected by product features, uses, and benefits; characteristics of the people in the target audience; the campaign’s objectives and platform; and the choice of media. Advertisers use copy and artwork to create the message. The execution of an advertising campaign requires extensive planning and coordination.

    Finally, advertisers must devise one or more methods for evaluating advertisement effectiveness. Evaluations performed before the campaign begins are called pretests; those conducted after the campaign are called posttests. Two types of posttests are a recognition test, in which respondents are shown the actual advertisement and asked whether they recognize it, and a recall test. In aided recall tests, respondents are shown a list of products, brands, company names, or trademarks to jog their memories. In unaided tests, no clues are given.


  3. Identify who is responsible for developing advertising campaigns.

    Advertising campaigns can be developed by personnel within the firm or in conjunction with advertising agencies. When a campaign is created by the firm’s personnel, it may be developed by one or more individuals or by an advertising department within the firm. Use of an advertising agency may be advantageous because an agency provides highly skilled, objective specialists with broad experience in advertising at low to moderate costs to the firm.

  4. Recognize the tools used in public relations.

    Public relations is a broad set of communication efforts used to create and maintain favorable relationships between an organization and its stakeholders. Public relations can be used to promote people, places, ideas, activities, and countries and to create and maintain a positive company image. Public relations tools include written materials, such as brochures, newsletters, and annual reports; corporate identity materials, such as business cards and signs; speeches; event sponsorships; and special events. Publicity is communication in news-story form about an organization, its products, or both transmitted through a mass medium at no charge. Publicity-based public relations tools include news releases, feature articles, captioned photographs, and press conferences. Problems that organizations confront in using publicity-based public relations include reluctance of media personnel to print or air releases and lack of control over timing and content of messages.

  5. Understand how public relations is used and evaluated.

    To evaluate the effectiveness of their public relations programs, companies conduct research to determine how well their messages are reaching their audiences. Environmental monitoring, public relations audits, and counting the number of media exposures are all means of evaluating public relations effectiveness. Organizations should avoid negative public relations by taking steps to prevent negative events that result in unfavorable publicity. To diminish the impact of unfavorable public relations, organizations should institute policies and procedures for dealing with news personnel and the public when negative events occur.



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