8. Advertising & PR

Question 1

Define advertising.

Answer 1

Activity of explicitly paying for media space/time in order to direct favourable attention to certain goods/services

Question 2

What are 3 characteristics of advertising?

Answer 2

1) transaction: time & space is sold
2) explicit: not hidden. product/brand is clearly stated
3) involves persuasion: advances a point of view/course of action through communication

Question 3

What are 2 sections of the advertising industry?

Answer 3

1) Advertising agencies: companies that specialise in the creation of ads to place in media. Those media accept payment for exhibiting those ads
2) advertising/marketing agency holding companies: firms that own full service advertising agencies, marketing consulting agencies, direct-marketing firms, research companies, PR agencies etc

Question 4

What are 4 pairs of advertising agencies?

Answer 4

1) Business to Business vs Consumer agencies
2) General agencies vs Specialty agencies
3) Traditional agencies vs Direct-marketing agencies
4) Agency networks vs Stand-alone firms

Question 5

What is the difference between B2B agencies and Consumer agencies?

Answer 5

• B2B works for advertisers interested in persuading personnel in other companies to buy from them
• Consumer agencies work for advertisers interested to persuade individual consumers to buy their products

Question 6

What is the difference between General agencies and Specialty agencies?

Answer 6

• General agencies: work for all types of advertisers
• Specialty agencies: do specialised work/only tackle certain types of clients (e.g. online specialty/specialised in reaching specific target groups)

Question 7

What is the difference between Traditional agencies and Direct-marketing agencies?

Answer 7

• Traditional agencies: create and distribute persuasive messages that create favourable impressions of the product, leading to buying
• Direct-marketing agencies: focus on mailers, telephone marketing, tv ads etc to elicit purchase (very quickly! in your face!)

Question 8

What is the difference between Agency networks and Stand-alone firms?

Answer 8

• Agency networks have branch offices in different cities worldwide. Can share research and expertise within their integrated network

Question 9

What is the advantage of advertising/marketing agency holding companies?

Answer 9

They can have different advertisers come under the same holding company, which has different independent companies. Different advertisers need not worry about competition/confidential information being shared when they all go to the same company.

Question 10

What are the two types of personnel involved in ad production?

Answer 10

1) Account executive: from advertiser. Communicates information between advertiser & agency
2) Creative personnel: works on creating the media content
3) Media planners: Agency personnel making decisions about ad distribution

Question 11

What are 3 key processes of Advertising?

Answer 11

1) Market segmentation: finding out target audience; dividing society into different categories of consumers
2) Sales pitch: a message that portrays the world of intended audience, the problem in that world, and actions to solve that problem (the product)
3) Branding: creating an image of the product

Question 12

What is Cost Per Thousand (CPM)?

Answer 12

A measurement used in advertising - the cost an advertiser pays for one thousand views/clicks of an advertisement.

Question 13

What is Marketing?

Answer 13

A larger category that encompasses promotional activities (advertising, PR) and products, pricing etc

Question 14

What is Integrated Marketing Communications (IMC)?

Answer 14

A new form of integrated promotional strategy that combines advertising & PR

Question 15

What are the 3 aspects of IMC?

Answer 15

1) Branding: brands create their own content and people associate the content with the brand (e.g. the LEGO movie)
2) Product placement: brands and products integrated into another work, where advertisers pay to put their products in (植入)
3) Event marketing: companies directly engage with consumers. Involves in-person interaction/real-time engagement (e.g. roadshows, sport events, webinars)

Question 16

What are 5 new types of Ads?

Answer 16

1) Mobile-first strategy (ads only on social media)
2) Video ads
3) In-game ads
4) Click-through ads (click on ad to buy)
5) Location-based ads (users consumer data to display relevant messaging; highly targeted)

Question 17

What are 2 new trends of advertising (and their benefits & concerns)?

Answer 17

1) Data/insight-driven advertising: mines consumer data and delivers personalised advertising. Advertisers must constantly adapt to changing data privacy legislations
2) AI advertising: use AI powered tools can detect patterns at scale in advertising data, then predict changes. Helps companies optimise ad spending

Question 18

What are 5 common advertising strategies?

Answer 18

1) Fear appeal
2) Emotional appeal: more influential on a person’s intent to buy, since some rely on emotions rather than information to make brand decisions
3) Reciprocity: discounts, freebies, reward points etc - makes customers feel obliged to do something in return (buying) when you have done something for them
4) Scarcity: 物以稀为贵
5) Social Proof: we emulate (imitate) others’ behaviours, especially when we are uncertain about something ourselves

Question 19

What is Public Relations? (3)

Answer 19

• How organisations communicate with the public, promote themselves, and build a positive reputation and public image.
• Strategic communication process that builds mutually beneficial relationships between organisations and their publics
• Influence media to represent their organisation positively & communicate key messages

Question 20

What are 4 types of PR in media?

Answer 20

1) Paid: Brand pays to use it as a channel
2) Earned: third-party endorsement of brand
3) Shared: customers is a channel for your content
4) Owned: you control content (e.g. social media, website, blog)

Question 21

What are the benefits and challenges of paid PR in media?

Answer 21

Benefit: in demand. immediacy of control
Challenges: cluttered, low credibility

Question 22

What are the benefits and challenges of earned PR in media?

Answer 22

third party endorsement
Benefit: trusted, usually free, transparent
Challenges: no control over how positive/negative

Question 23

What are the benefits and challenges of shared PR in media?

Answer 23

UGC
Benefit: credible, organic
Challenges: no control over how positive/negative

Question 24

What are the benefits and challenges of owned PR in media?

Answer 24

Your own media
Benefit: control, cost efficient, versatile
Challenges: company comms usually not trusted, requires time to scale

Question 25

What are 5 measurements of PR metrics?

Answer 25

1) mentions on your brand
2) sentiment analysos
3) conversions (to sales)
4) domain authority
5) share of voice

Question 26

Why is there a need for PR? (4)

Answer 26

1) can serve public good & change attitudes about pressing social issues
2) makes company think about its impact & context of environment it is in
3) helps with company image & recruitment
4) makes marketing more effective

Question 27

What are 4 challenges faced by PR practitioners?

Answer 27

1) Everyone is publisher now - rise of public opinion
2) Media continues to be primary influencer of public opinion - PR should still work closely with media to drive things
3) Values make a brand - people buy the values of a brand. Communicate this well
4) Look at what content resonates well with audience

Question 28

What are 4 models of PR?

Answer 28

1) Press agent/Publicity model: One way; use persuasion and manipulation to influence audiences to behave as the organisation desires
2) Public information model: one way; uses things like press releases to distribute organisational information.
3) Two-way asymmetrical model: uses research to develop messages that are most likely to persuade publics to behave as the organisation wants. Purpose is to change public’s attitudes/behaviour. (imbalanced)
4) Two-way symmetrical model: negotiate with the public, resolve conflict and promote mutual understanding and respect between organisation and its shareholders.