Tuesday, March 23, 2010

Chapter 15: Advertising and PR

I think much more in bullet points so i'll initially list the info like that.

Advertising:

*Spending on advertising is different for new and established brands/companies. Emerging products/companies have to spend proportionately more to make themselves known. Big names like Coca-Cola and Verizon Communications (even though they pay nearly $10million a day on advertising) concentrate on reminding consumers of their presence and they are already known thanks to their heavy investment in advertising in previous years.
* The reason for switching advertising methods is that after a certain point diminishing returns set in aka the Advertising Response Function. After this point, money spent on advertising will become decreasingly effective at raising awareness. You can only tell so many people about something new until you start running into the same people basically.
*Serious/Dramatic ads work better to improve negative attitudes from consumers toward positive ones. Humerous ones work better among those who already have a positive attitude towards the product/brand/company presented in them.
*Institutional advertising has been on the rise. These work to promote the company/organization on the whole and preserve their desired identity. Advocacy ads, responses to recent controversies and accusations are included in this type of advertising.
*Product Advertising is something we've been swamped with since our first days in existence. Pioneering, Competative, and Comparative Advertising are all specific angles that are taken in this type of ad.
*For an Ad Campaign: planning, development, execution, scheduling (for tv: flight, pulsing, or seasonal for example), and post campaign evaluation are your basic formula

PR:

*PR can either be set up through press releases and proactive media relations but can also create themselves such as the diet coke + mento mint geyser video. (Mento estimates the online buzz spurred on in fan videos to be worth over $10million. Mento spends under $20 million on advertising. Total.)
*Weapons in the PR Department's arsenal: product publicity, press relations, corporate communications, public affairs, lobbying (oh the dreaded lobbyists), employee and investor relations, and crisis management (damage control for when bad publicity happens)
*New Product publicity - here's where the extra money goes to introduce new products. Publicity stunts such as Henri Desgrange's bicycle race to promote his newspaper (known as the Tour de France today; 100 years later) fall into this category.
*Product Placement: The fun "SONY" logo you see in a movie or phone you see placed into a scene in a show.
*Consumer Education: "informed consumers are better than loyal consumers." Seminars and educational programs regarding services pertinent to the providing comapny/organization fall under this category.
*Sponsorship: Keeping athletes many times wealthier than us since before Michael Jordan
*Internet Web Sites: Convenient yet losing popularity. Many products no longer receive their own site. Instead they may be promoted on the parent site established for the whole company entity. If anything though, companies are moving towards blogs, essentially the newspaper of our generation to promote themselves online in ways aside from advertisement banners and pop ups.

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