Deck 18: Advertising and Public Relations

Question 1

An organization must define its objectives carefully when developing an advertising campaign. Which of the following advertising objectives would be most useful for a company, and why?
a. The organization will spend $1 million to move from second in market share to market leader.
b. The organization wants to increase sales from $1.2 million to $1.5 million this year to gain the lead in market share.
c. The advertising objective is to gain as much market share as possible within the next 12 months.
d. The advertising objective is to increase sales by 15 percent.

Answer 1

It is very important to define advertising objectives carefully because they help in guiding the development of the campaign. These objectives should be stated clearly, precisely and in terms which are measurable. The clear and precise objectives help advertisers in evaluating the success of the campaign at the end in terms of the objectives achieved.
All the advertising objectives given in the question are useful for the organization but the one which is most useful is where the organization wants to spend $1 million to become the market leader. This objective is most useful because it is very clear and precise and can be measured easily.
This advertising objective clearly shows that the organization has a precise goal of becoming number one in the industry and that it wants to stay ahead of the competition. This objective also shows that the organization also has a dedicated advertising budget to achieve its objectives.

Question 2

Toyota Uses Advertising to Restore Trust
For decades, Toyota set the standard for quality and reliability. Known worldwide for its commitment to quality production, Toyota created the "Toyota Way," a manufacturing philosophy that emphasized continuous progress and reduced waste. Thanks to the success of the Toyota Way, Toyota became the top automobile manufacturer in the world in 2008.
However, Toyota hit a major snag that caused stakeholders to question its quality. In 2009 and 2010, the company issued a series of recalls on several of its popular models because of safety problems with accelerators, brakes, and power steering. Following the announcement of the recalls, Toyota engineers and mechanics began to search for solutions to the problems and started the process of repairing millions of cars. Many critics accused the company of acting too slowly to recall the defective cars and of trying to push the problem under the rug.
Toyota was fined $16.4 million for allegedly hiding safety defects from consumers. This came after its reputation was already tarnished by a seemingly endless number of recalls on various car models. The company became the target for late-night television jokes and seemed to constantly be in the news regarding yet another recall. This negative publicity damaged the reputation and goodwill that Toyota had developed over many years.
In the wake of massive recalls, Toyota had to adjust its advertising strategy. The world's largest carmaker pulled its national advertising campaign that promoted its cars for dependability, safety, and reliability. Toyota, which had long been the leader in automotive quality, had to scramble to figure out how to handle a growing public relations crisis resulting from recalls and a halt in sales. A series of ads were developed to deal directly with the crisis and admit that the company had strayed from keeping its eye on quality while its sales had been growing rapidly. A number of low-key ads dealt directly with the issue and promised to regain consumers' trust. Toyota also took out full-page ads in major newspapers and produced feel-good television spots featuring dealers, mechanics, and owners. The company offered no-interest loans, discount leases, and a complementary two-year maintenance program to get buyers back.
Although the situation looked dim for Toyota, a later revelation changed everything. In 2011, Toyota achieved a victory when the National Highway Traffic Safety Administration ruled that most of the accidents were caused by driver error, not mechanical problems. This cleared Toyota from several of the accusations levied against the company by media outlets and irate stakeholders. Yet the combination of the recall crisis and the natural disasters that hit Japan greatly damaged Toyota's sales, and General Motors surpassed Toyota as the world's top auto manufacturer.
However, signs now indicate that Toyota is on the rebound. The Toyota Camry and Toyota Corolla are some of the best-selling cars in the United States, and the Toyota Prius remains one of the most popular hybrids. Additionally, Toyota is still the brand of choice for many segments of the population. For instance, American minorities buy more vehicles from Toyota than any other carmaker. One reason is the fact that Toyota has become an expert at targeting advertisements to minority populations. For example, when Toyota became concerned that few African Americans were purchasing its hybrids, the company released a commercial featuring an African American couple deciding that a Toyota hybrid was the best vehicle for them. Sales of the Toyota Prius nearly doubled among African American buyers after the ad ran.
After a three-year hiatus, Toyota also began to advertise in the Super Bowl. During the 2012 Super Bowl game, Toyota released a series of ads depicting the quality and luxury of Toyota vehicles. Whereas one ad contained more of a feel-good quality and featured Toyota factory workers at different stages of the production process, another advertisement targeting first-time Millennial car buyers tried to make purchasing a Toyota vehicle into a "game" by using backdrops from Hasbro's Life board game. Although they had the same objective-promote Toyota vehicles-these different advertising messages were tailored to target specific parts of the American population.
Toyota's advertising push signals a strong message to its competitors: Toyota is fighting to regain its global dominance. Although the automaker may have more hard work ahead before it can re-obtain its high-quality status, the company appears to be well on its way to rebuilding its reputation.
How is Toyota using advertising to overcome negative publicity associated with a product quality issue?

Answer 2

Advertising:
Advertising is the way by which a company promotes its products and lures the customers to buy them.
The customers of the company had been raising questions on the quality of the cars that the company was manufacturing. In order to negate the negative publicity, the company came up with a series of low profile ads in which the company admitted that it had strayed from keeping an eye on the quality of the products that it was manufacturing.
The company took out ads in good newspapers and produced feel good television spots featuring dealers, mechanics and owners.
The company offered no interest loans, two year maintenances, discounts on its products in order to win back its customers.

Question 3

What is the difference between institutional and product advertising?

Answer 3

Institutional advertising is done for promoting a company's image rather than any specific brand. The primary objective behind this type of advertising is to create goodwill for the entire company and not just for a particular brand. On the other hand, product advertising is exactly the opposite and it is done to sell and promote a particular product or brand of an organization.
The differences between both types of advertising are summarized in the table provided below:

Question 4

Determining the message that advertising is to communicate to the customer is an important part of developing a marketing strategy. A sound understanding of the various types of advertising and different forms of media is essential in selecting the appropriate methods for communicating the message. These decisions form a critical segment of the marketing plan. To assist you in relating the information in this chapter to the development of your marketing plan, consider the following issues:
What class and type of advertising would be most appropriate for your product?
The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 5

LEGO Company
LEGO Company has been making toys since 1932 and has become one of the most recognized brand names in the toy industry. With the company motto "Only the best is good enough," it is no surprise that LEGO has developed an exciting and interactive online presence. See how the company promotes LEGO products and encourages consumer involvement with the brand by visiting LEGO's website at www.lego.com.
Which type of advertising is LEGO Company using on its website?

Question 6

Pepsi Takes Different Spins on Advertising
Almost since Pepsi's creation, Pepsi and Coca-Cola have been fighting for dominance in the soft drink market. These "cola wars" have seen victories and defeats on both sides, with Pepsi gaining market share during some years and Coca-Cola gaining dominance during other years. With much of the population unable to tell the difference between the two, the question remains how to convince consumers to prefer one brand over the other. Many consumers tend to become brand loyal early on in life, requiring soft drink makers to develop creative ways to change consumer perceptions about the value of their brands. Advertising is the primary means that these businesses use to persuade consumers to favor their products.
For many years, Pepsi has been an advertising guru, spending millions on a variety of media to get its products in front of consumers. The company became skilled at using celebrity pop stars in advertisements promoting its products, such as Michael Jackson, Ray Charles, and Britney Spears. Because the Super Bowl tends to give brands some of the best exposure, Pepsi has had a constant presence at the Super Bowl for many years. In 2010, however, Pepsi deviated from its 23-year practice of Super Bowl advertisements and did something entirely different to market its brand. The company decided to engage in a type of institutional advertising in which it would promote the "social good" by agreeing to fund projects to make the world a better place. The company took the $20 million it would have spent on the Super Bowl and appropriated it to fund the Pepsi Refresh Project.
The Pepsi Refresh Project uses social media to create a platform where consumers can vote on projects to receive funding. Consumers are invited to submit ideas on the Pepsi Refresh social media site for projects that would help improve society. These project ideas are listed in four categories: (1) arts and music, (2) communities, (3) education, and (4) the Pepsi Challenge. The Pepsi Challenge asks questions about how consumers would change the world. Those with the best answers receive project funding. Consumers vote on which project ideas they like the best, and Pepsi provides money to the winners to make their project ideas a reality. Pepsi accepts 1,000 ideas each month.
The Pepsi Refresh project generated positive publicity from many major news outlets. While this publicity helped to promote the project, Pepsi had to engage in significant advertising to inform the public about the new initiative. Advertising media included TV clips, posters, buses, and even the sides of buildings. Mottos like "Vote Today, Change Tomorrow" and "Every Pepsi Refreshes the World" helped spread the image of Pepsi as a socially responsible company. While Pepsi's objectives for the project were to increase sales, it also wanted to differentiate itself from its competitors and address issues that the younger generation considered to be important. Pepsi-funded projects ranged from SOS animal shelters to eco-friendly theaters. The Pepsi Refresh social media site received 20,000 daily comments.
In 2011, Pepsi decided to resume its Super Bowl advertisements. Interestingly, Pepsi decided to use consumers once again to help it come up with a memorable Super Bowl advertisement for its Doritos brand. Similar to the Pepsi Refresh Project, consumers could submit ads and have other consumers vote on them. The winning ad was featured during the Super Bowl. This type of consumer-generated advertising encourages stakeholders to participate and interact with the brand, creating a high-involvement situation that can increase consumer loyalty.
Although Pepsi began advertising again during the Super Bowl, it also kept the Pepsi Refresh Project going. The company made the big decision to go global, extending the Pepsi Refresh Project to Europe, Asia, and Latin America. In 2012, the company announced it would also start considering projects in Canada. As the initiative continues, some of the company's objectives have evolved. The success of the initiative will largely be determined by whether the company creates consumer engagement, particularly among Millennials. In doing so, Pepsi not only spreads awareness of its brand among younger generations but is also able to discover more about this customer base, including what issues are the most important to them. By integrating consumers into its promotional activities, Pepsi has been able to extend its reach and connect to consumers in entirely new ways.
How did Pepsi change its advertising focus when it began the Pepsi Refresh Project?

Question 7

Copy, the verbal portion of advertising, is used to move readers through a persuasive sequence called AIDA: attention, interest, desire, and action. To achieve this, some copywriters have adopted guidelines for developing advertising copy. Select a print ad and identify how it (a) identifies a specific problem, (b) recommends the product as the best solution to the problem, (c) states the product's advantages and benefits, (d) substantiates the ad's claims, and (e) asks the reader to take action.

Question 8

Toyota Uses Advertising to Restore Trust
For decades, Toyota set the standard for quality and reliability. Known worldwide for its commitment to quality production, Toyota created the "Toyota Way," a manufacturing philosophy that emphasized continuous progress and reduced waste. Thanks to the success of the Toyota Way, Toyota became the top automobile manufacturer in the world in 2008.
However, Toyota hit a major snag that caused stakeholders to question its quality. In 2009 and 2010, the company issued a series of recalls on several of its popular models because of safety problems with accelerators, brakes, and power steering. Following the announcement of the recalls, Toyota engineers and mechanics began to search for solutions to the problems and started the process of repairing millions of cars. Many critics accused the company of acting too slowly to recall the defective cars and of trying to push the problem under the rug.
Toyota was fined $16.4 million for allegedly hiding safety defects from consumers. This came after its reputation was already tarnished by a seemingly endless number of recalls on various car models. The company became the target for late-night television jokes and seemed to constantly be in the news regarding yet another recall. This negative publicity damaged the reputation and goodwill that Toyota had developed over many years.
In the wake of massive recalls, Toyota had to adjust its advertising strategy. The world's largest carmaker pulled its national advertising campaign that promoted its cars for dependability, safety, and reliability. Toyota, which had long been the leader in automotive quality, had to scramble to figure out how to handle a growing public relations crisis resulting from recalls and a halt in sales. A series of ads were developed to deal directly with the crisis and admit that the company had strayed from keeping its eye on quality while its sales had been growing rapidly. A number of low-key ads dealt directly with the issue and promised to regain consumers' trust. Toyota also took out full-page ads in major newspapers and produced feel-good television spots featuring dealers, mechanics, and owners. The company offered no-interest loans, discount leases, and a complementary two-year maintenance program to get buyers back.
Although the situation looked dim for Toyota, a later revelation changed everything. In 2011, Toyota achieved a victory when the National Highway Traffic Safety Administration ruled that most of the accidents were caused by driver error, not mechanical problems. This cleared Toyota from several of the accusations levied against the company by media outlets and irate stakeholders. Yet the combination of the recall crisis and the natural disasters that hit Japan greatly damaged Toyota's sales, and General Motors surpassed Toyota as the world's top auto manufacturer.
However, signs now indicate that Toyota is on the rebound. The Toyota Camry and Toyota Corolla are some of the best-selling cars in the United States, and the Toyota Prius remains one of the most popular hybrids. Additionally, Toyota is still the brand of choice for many segments of the population. For instance, American minorities buy more vehicles from Toyota than any other carmaker. One reason is the fact that Toyota has become an expert at targeting advertisements to minority populations. For example, when Toyota became concerned that few African Americans were purchasing its hybrids, the company released a commercial featuring an African American couple deciding that a Toyota hybrid was the best vehicle for them. Sales of the Toyota Prius nearly doubled among African American buyers after the ad ran.
After a three-year hiatus, Toyota also began to advertise in the Super Bowl. During the 2012 Super Bowl game, Toyota released a series of ads depicting the quality and luxury of Toyota vehicles. Whereas one ad contained more of a feel-good quality and featured Toyota factory workers at different stages of the production process, another advertisement targeting first-time Millennial car buyers tried to make purchasing a Toyota vehicle into a "game" by using backdrops from Hasbro's Life board game. Although they had the same objective-promote Toyota vehicles-these different advertising messages were tailored to target specific parts of the American population.
Toyota's advertising push signals a strong message to its competitors: Toyota is fighting to regain its global dominance. Although the automaker may have more hard work ahead before it can re-obtain its high-quality status, the company appears to be well on its way to rebuilding its reputation.
Why did Toyota have to pull advertising for its cars' dependability, safety, and reliability during a time when it was getting so much public attention for safety recalls related to sudden acceleration?

Question 9

What is the difference between competitive advertising and comparative advertising?

Question 10

Determining the message that advertising is to communicate to the customer is an important part of developing a marketing strategy. A sound understanding of the various types of advertising and different forms of media is essential in selecting the appropriate methods for communicating the message. These decisions form a critical segment of the marketing plan. To assist you in relating the information in this chapter to the development of your marketing plan, consider the following issues:
Discuss the different methods for determining the advertising appropriation.
The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 11

LEGO Company
LEGO Company has been making toys since 1932 and has become one of the most recognized brand names in the toy industry. With the company motto "Only the best is good enough," it is no surprise that LEGO has developed an exciting and interactive online presence. See how the company promotes LEGO products and encourages consumer involvement with the brand by visiting LEGO's website at www.lego.com.
What target audience is LEGO attempting to reach through its website?

Question 12

Pepsi Takes Different Spins on Advertising
Almost since Pepsi's creation, Pepsi and Coca-Cola have been fighting for dominance in the soft drink market. These "cola wars" have seen victories and defeats on both sides, with Pepsi gaining market share during some years and Coca-Cola gaining dominance during other years. With much of the population unable to tell the difference between the two, the question remains how to convince consumers to prefer one brand over the other. Many consumers tend to become brand loyal early on in life, requiring soft drink makers to develop creative ways to change consumer perceptions about the value of their brands. Advertising is the primary means that these businesses use to persuade consumers to favor their products.
For many years, Pepsi has been an advertising guru, spending millions on a variety of media to get its products in front of consumers. The company became skilled at using celebrity pop stars in advertisements promoting its products, such as Michael Jackson, Ray Charles, and Britney Spears. Because the Super Bowl tends to give brands some of the best exposure, Pepsi has had a constant presence at the Super Bowl for many years. In 2010, however, Pepsi deviated from its 23-year practice of Super Bowl advertisements and did something entirely different to market its brand. The company decided to engage in a type of institutional advertising in which it would promote the "social good" by agreeing to fund projects to make the world a better place. The company took the $20 million it would have spent on the Super Bowl and appropriated it to fund the Pepsi Refresh Project.
The Pepsi Refresh Project uses social media to create a platform where consumers can vote on projects to receive funding. Consumers are invited to submit ideas on the Pepsi Refresh social media site for projects that would help improve society. These project ideas are listed in four categories: (1) arts and music, (2) communities, (3) education, and (4) the Pepsi Challenge. The Pepsi Challenge asks questions about how consumers would change the world. Those with the best answers receive project funding. Consumers vote on which project ideas they like the best, and Pepsi provides money to the winners to make their project ideas a reality. Pepsi accepts 1,000 ideas each month.
The Pepsi Refresh project generated positive publicity from many major news outlets. While this publicity helped to promote the project, Pepsi had to engage in significant advertising to inform the public about the new initiative. Advertising media included TV clips, posters, buses, and even the sides of buildings. Mottos like "Vote Today, Change Tomorrow" and "Every Pepsi Refreshes the World" helped spread the image of Pepsi as a socially responsible company. While Pepsi's objectives for the project were to increase sales, it also wanted to differentiate itself from its competitors and address issues that the younger generation considered to be important. Pepsi-funded projects ranged from SOS animal shelters to eco-friendly theaters. The Pepsi Refresh social media site received 20,000 daily comments.
In 2011, Pepsi decided to resume its Super Bowl advertisements. Interestingly, Pepsi decided to use consumers once again to help it come up with a memorable Super Bowl advertisement for its Doritos brand. Similar to the Pepsi Refresh Project, consumers could submit ads and have other consumers vote on them. The winning ad was featured during the Super Bowl. This type of consumer-generated advertising encourages stakeholders to participate and interact with the brand, creating a high-involvement situation that can increase consumer loyalty.
Although Pepsi began advertising again during the Super Bowl, it also kept the Pepsi Refresh Project going. The company made the big decision to go global, extending the Pepsi Refresh Project to Europe, Asia, and Latin America. In 2012, the company announced it would also start considering projects in Canada. As the initiative continues, some of the company's objectives have evolved. The success of the initiative will largely be determined by whether the company creates consumer engagement, particularly among Millennials. In doing so, Pepsi not only spreads awareness of its brand among younger generations but is also able to discover more about this customer base, including what issues are the most important to them. By integrating consumers into its promotional activities, Pepsi has been able to extend its reach and connect to consumers in entirely new ways.
Evaluate the public relations project along with why Pepsi decided to resume Super Bowl ads.

Question 13

Advertisers use several types of publicity mechanisms. Look through some recent newspapers and magazines or use an Internet search engine and identify a news release, a feature article, or a captioned photograph used to publicize a product. Describe the type of product.

Question 14

Toyota Uses Advertising to Restore Trust
For decades, Toyota set the standard for quality and reliability. Known worldwide for its commitment to quality production, Toyota created the "Toyota Way," a manufacturing philosophy that emphasized continuous progress and reduced waste. Thanks to the success of the Toyota Way, Toyota became the top automobile manufacturer in the world in 2008.
However, Toyota hit a major snag that caused stakeholders to question its quality. In 2009 and 2010, the company issued a series of recalls on several of its popular models because of safety problems with accelerators, brakes, and power steering. Following the announcement of the recalls, Toyota engineers and mechanics began to search for solutions to the problems and started the process of repairing millions of cars. Many critics accused the company of acting too slowly to recall the defective cars and of trying to push the problem under the rug.
Toyota was fined $16.4 million for allegedly hiding safety defects from consumers. This came after its reputation was already tarnished by a seemingly endless number of recalls on various car models. The company became the target for late-night television jokes and seemed to constantly be in the news regarding yet another recall. This negative publicity damaged the reputation and goodwill that Toyota had developed over many years.
In the wake of massive recalls, Toyota had to adjust its advertising strategy. The world's largest carmaker pulled its national advertising campaign that promoted its cars for dependability, safety, and reliability. Toyota, which had long been the leader in automotive quality, had to scramble to figure out how to handle a growing public relations crisis resulting from recalls and a halt in sales. A series of ads were developed to deal directly with the crisis and admit that the company had strayed from keeping its eye on quality while its sales had been growing rapidly. A number of low-key ads dealt directly with the issue and promised to regain consumers' trust. Toyota also took out full-page ads in major newspapers and produced feel-good television spots featuring dealers, mechanics, and owners. The company offered no-interest loans, discount leases, and a complementary two-year maintenance program to get buyers back.
Although the situation looked dim for Toyota, a later revelation changed everything. In 2011, Toyota achieved a victory when the National Highway Traffic Safety Administration ruled that most of the accidents were caused by driver error, not mechanical problems. This cleared Toyota from several of the accusations levied against the company by media outlets and irate stakeholders. Yet the combination of the recall crisis and the natural disasters that hit Japan greatly damaged Toyota's sales, and General Motors surpassed Toyota as the world's top auto manufacturer.
However, signs now indicate that Toyota is on the rebound. The Toyota Camry and Toyota Corolla are some of the best-selling cars in the United States, and the Toyota Prius remains one of the most popular hybrids. Additionally, Toyota is still the brand of choice for many segments of the population. For instance, American minorities buy more vehicles from Toyota than any other carmaker. One reason is the fact that Toyota has become an expert at targeting advertisements to minority populations. For example, when Toyota became concerned that few African Americans were purchasing its hybrids, the company released a commercial featuring an African American couple deciding that a Toyota hybrid was the best vehicle for them. Sales of the Toyota Prius nearly doubled among African American buyers after the ad ran.
After a three-year hiatus, Toyota also began to advertise in the Super Bowl. During the 2012 Super Bowl game, Toyota released a series of ads depicting the quality and luxury of Toyota vehicles. Whereas one ad contained more of a feel-good quality and featured Toyota factory workers at different stages of the production process, another advertisement targeting first-time Millennial car buyers tried to make purchasing a Toyota vehicle into a "game" by using backdrops from Hasbro's Life board game. Although they had the same objective-promote Toyota vehicles-these different advertising messages were tailored to target specific parts of the American population.
Toyota's advertising push signals a strong message to its competitors: Toyota is fighting to regain its global dominance. Although the automaker may have more hard work ahead before it can re-obtain its high-quality status, the company appears to be well on its way to rebuilding its reputation.
What can Toyota do going forward to restore its image?

Question 15

What are the major steps in creating an advertising campaign?

Question 16

Determining the message that advertising is to communicate to the customer is an important part of developing a marketing strategy. A sound understanding of the various types of advertising and different forms of media is essential in selecting the appropriate methods for communicating the message. These decisions form a critical segment of the marketing plan. To assist you in relating the information in this chapter to the development of your marketing plan, consider the following issues:
Using Table 18.2 as a guide, evaluate the different types of media and determine which would be most effective in meeting your promotional objectives (from Chapter 17).

The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 17

LEGO Company
LEGO Company has been making toys since 1932 and has become one of the most recognized brand names in the toy industry. With the company motto "Only the best is good enough," it is no surprise that LEGO has developed an exciting and interactive online presence. See how the company promotes LEGO products and encourages consumer involvement with the brand by visiting LEGO's website at www.lego.com.
Identify the advertising objectives LEGO is attempting to achieve through its website

Question 18

Pepsi Takes Different Spins on Advertising
Almost since Pepsi's creation, Pepsi and Coca-Cola have been fighting for dominance in the soft drink market. These "cola wars" have seen victories and defeats on both sides, with Pepsi gaining market share during some years and Coca-Cola gaining dominance during other years. With much of the population unable to tell the difference between the two, the question remains how to convince consumers to prefer one brand over the other. Many consumers tend to become brand loyal early on in life, requiring soft drink makers to develop creative ways to change consumer perceptions about the value of their brands. Advertising is the primary means that these businesses use to persuade consumers to favor their products.
For many years, Pepsi has been an advertising guru, spending millions on a variety of media to get its products in front of consumers. The company became skilled at using celebrity pop stars in advertisements promoting its products, such as Michael Jackson, Ray Charles, and Britney Spears. Because the Super Bowl tends to give brands some of the best exposure, Pepsi has had a constant presence at the Super Bowl for many years. In 2010, however, Pepsi deviated from its 23-year practice of Super Bowl advertisements and did something entirely different to market its brand. The company decided to engage in a type of institutional advertising in which it would promote the "social good" by agreeing to fund projects to make the world a better place. The company took the $20 million it would have spent on the Super Bowl and appropriated it to fund the Pepsi Refresh Project.
The Pepsi Refresh Project uses social media to create a platform where consumers can vote on projects to receive funding. Consumers are invited to submit ideas on the Pepsi Refresh social media site for projects that would help improve society. These project ideas are listed in four categories: (1) arts and music, (2) communities, (3) education, and (4) the Pepsi Challenge. The Pepsi Challenge asks questions about how consumers would change the world. Those with the best answers receive project funding. Consumers vote on which project ideas they like the best, and Pepsi provides money to the winners to make their project ideas a reality. Pepsi accepts 1,000 ideas each month.
The Pepsi Refresh project generated positive publicity from many major news outlets. While this publicity helped to promote the project, Pepsi had to engage in significant advertising to inform the public about the new initiative. Advertising media included TV clips, posters, buses, and even the sides of buildings. Mottos like "Vote Today, Change Tomorrow" and "Every Pepsi Refreshes the World" helped spread the image of Pepsi as a socially responsible company. While Pepsi's objectives for the project were to increase sales, it also wanted to differentiate itself from its competitors and address issues that the younger generation considered to be important. Pepsi-funded projects ranged from SOS animal shelters to eco-friendly theaters. The Pepsi Refresh social media site received 20,000 daily comments.
In 2011, Pepsi decided to resume its Super Bowl advertisements. Interestingly, Pepsi decided to use consumers once again to help it come up with a memorable Super Bowl advertisement for its Doritos brand. Similar to the Pepsi Refresh Project, consumers could submit ads and have other consumers vote on them. The winning ad was featured during the Super Bowl. This type of consumer-generated advertising encourages stakeholders to participate and interact with the brand, creating a high-involvement situation that can increase consumer loyalty.
Although Pepsi began advertising again during the Super Bowl, it also kept the Pepsi Refresh Project going. The company made the big decision to go global, extending the Pepsi Refresh Project to Europe, Asia, and Latin America. In 2012, the company announced it would also start considering projects in Canada. As the initiative continues, some of the company's objectives have evolved. The success of the initiative will largely be determined by whether the company creates consumer engagement, particularly among Millennials. In doing so, Pepsi not only spreads awareness of its brand among younger generations but is also able to discover more about this customer base, including what issues are the most important to them. By integrating consumers into its promotional activities, Pepsi has been able to extend its reach and connect to consumers in entirely new ways.
What does Pepsi gain in trying to encourage consumers to participate in its promotional activities?

Question 19

Negative public relations can harm an organization's marketing efforts if not dealt with properly. Identify a company that was recently the target of negative public relations. Describe the situation and discuss the company's response. What did marketers at this company do well? What, if anything, would you recommend that they change about their response?

Question 20

What is a target audience? How does a marketer analyze the target audience after identifying it?

Question 21

Determining the message that advertising is to communicate to the customer is an important part of developing a marketing strategy. A sound understanding of the various types of advertising and different forms of media is essential in selecting the appropriate methods for communicating the message. These decisions form a critical segment of the marketing plan. To assist you in relating the information in this chapter to the development of your marketing plan, consider the following issues:
What methods would you use to evaluate the effectiveness of your advertising campaign?
The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 22

College can be an exciting time. New friends, sporting events, parties. But for many, it can also be a harrowing experience, with a more demanding class and homework regimen and new adult responsibilities. In order to help reduce at least one aspect of the stress for your fellow students, you have decided to launch a laundry service, which, for a set monthly fee, will pick up and deliver clothes twice per week. You have contracted with a local dry cleaner to perform the dry cleaning service. Initial reaction from friends has been very positive, but to achieve scale, you need to attract many more customers. How can you reach them most effectively and efficiently? After considerable thought, you have decided to advertise in the college newspaper and a local, free advertising paper that is distributed on campus. Create an advertising platform to communicate the basic issues or selling points that you will include in your advertising campaign.

Question 23

Why is it necessary to define advertising objectives?

Question 24

Determining the message that advertising is to communicate to the customer is an important part of developing a marketing strategy. A sound understanding of the various types of advertising and different forms of media is essential in selecting the appropriate methods for communicating the message. These decisions form a critical segment of the marketing plan. To assist you in relating the information in this chapter to the development of your marketing plan, consider the following issues:
Review Table 18.5 and discuss possible uses for publicity in your promotional plan.

The information obtained from these questions should assist you in developing various aspects of your marketing plan found in the "Interactive Marketing Plan" exercise at www.cengagebrain.com.

Question 25

What is an advertising platform, and how is it used?

Question 26

What factors affect the size of an advertising budget? What techniques are used to determine an advertising budget?

Question 27

Describe the steps in developing a media plan.

Question 28

What is the function of copy in an advertising message?

Question 29

Discuss several ways to posttest the effectiveness of advertising.

Question 30

What role does an advertising agency play in developing an advertising campaign?

Question 31

What is public relations? Whom can an organization reach through public relations?

Question 32

How do organizations use public relations tools? Give several examples you have observed recently.

Question 33

Explain the problems and limitations associated with publicity-based public relations.

Question 34

In what ways is the effectiveness of public relations evaluated?

Question 35

What are some sources of negative public relations? How should an organization deal with unfavorable public relations?