c hapter 12 communicating customer value: advertising, sales promotion, and public relations
TRANSCRIPT
CCHAPTER HAPTER 1212
Communicating Communicating Customer Value: Customer Value: Advertising, Sales Advertising, Sales
Promotion, and Public Promotion, and Public RelationsRelations
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Discuss the process and advantages of integrated marketing communications.
Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix.
Describe and discuss the major decisions involved in developing an advertising program.
Explain how sales promotion campaigns are developed and implemented.
Explain how companies use public relations to communicate with their publics.
Roadmap: Previewing the Concepts
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The Agency Has recently won both
multiple creative awards and several major advertising accounts.
Located in South Beach, FL, far removed from mainstay agencies on Madison Avenue in NYC.
Agency philosophy: “Anything and everything is an ad.”
The Tactics Heavy focus on guerilla
tactics, unconventional uses of media, and holistic marketing strategies while TV is used only sparingly.
Street-level research helps develop creative appeals.
Tries to start a consumer movement behind the brand, and campaigns go well beyond advertising.
CP + BCP + B – An Unusual Success Story – An Unusual Success Story
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The Marketing Communications (Promotion) Mix
AdvertisingAdvertising
Public Public RelationRelation
ss
Sales Sales PromotionPromotion
Personal Personal SellingSelling
Direct Direct MarketinMarketin
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Mass markets have fragmented, leading to a shift away from mass marketing.
Improvements in information technology are speeding movement toward segmented marketing.
These factors have shifted the marketing communications model. – Less broadcasting & more narrow casting
Changing Communications Landscape
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Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.– Several factors influence the choice of
promotional tools.
Integrated Marketing Communications
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Figure 12-1Integrated Marketing Communications
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Integrated Marketing Communications
Begins by recognizing all contact points where the customer may encounter the company or its brand.
Seeks to deliver a clear and positive message via each contact.
Ties together messages and images in consistent fashion.
Target audience(s) must be identified.
Creates an integrated communication program which focuses on encouraging behavioral responses.
Helps the firm to manage customer relationships over time.
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Advertising
Can reach masses of geographically dispersed buyers.
Can repeat a message many times.
Is impersonal, one-way communication.
Can be very costly for some media types.
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Personal Selling
Involves personal interaction between two or more people.
Allows relationship building.
Most effective way for preferences, convictions, and actions to be influenced.
Most expensive promotion tool; requires long-term commitment.
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Sales Promotion
Wide assortment of tools.
Attracts consumer attention.
Offers strong incentives to buy.
Invites and rewards quick consumer response.
Effects are short-lived.
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Public Relations
Very believable. Reaches people who avoid
salespeople and ads. Can dramatize a company
or product. Tends to be used as an
afterthought. Planned use can be effective and
economical.
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Direct Marketing
Many forms that share four primary characteristics:– Nonpublic– Immediate– Customized– Interactive
Well suited to highly targeted marketing.
Direct mail is one form of direct marketing.
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Figure 12-2Push Vs. Pull Promotion Strategy
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Figure 12-3Major Decisions in Advertising
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Setting Advertising Objectives
Advertising Objective:– Specific communication task to be
accomplished with a specific target audience during a specific period of time.
Classified by Purpose:– Inform– Persuade– Remind
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Fulfilling Objectives
Outdoor advertising (billboard, transit, etc.) is often used for reminder purposes. Print ads can fulfill this objective as well.
Which of the ads above is/are attempting to remind consumers, versus inform or persuade?
Marketing in Action
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Setting the Advertising Budget
Affordable method Percentage-of-sales
method
Competitive-parity method
Objective-and-task method
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Consists of two major elements:– Creating advertising messages
Message strategy & message execution must break through the clutter.
– Selecting advertising media Set reach, frequency, and impact goals. Choose among major media types. Select specific media vehicles. Decide on media timing.
Developing Advertising Strategy
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The Message Strategy
Identify customer benefits. Develop compelling creative concept—
the “Big Idea.” Advertising appeals
should be meaningful, believable, and distinctive.
Angela Talley of DDB Worldwide explains how advertising people learn to think like consumers when developing the message strategy.
Video Snippet
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Message Execution
Technical Expertise
Scientific Evidence
Testimonial or Endorsement
Slice of Life Lifestyle Fantasy Mood or Image Musical Personality
Symbol
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Celebrity Endorsements
Celebrity endorsements have been at the heart of the “ Got Milk?” milk mustache campaign for years.
Marketing in Action
www.whymilk.com
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Humorous Advertising Appeals
Humorous advertising tones are being used in the marketing of many products, including dictionaries.
Marketing in Action
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Message Execution Choose a tone. Use memorable,
attention-getting words. Choose correct format
elements.– Illustration– Headline– Copy
Absolut print ads attract attention through choice of illustration and headline.www.absolutad.com/
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Setting Media Objectives
Reach– Percentage of people exposed to ad.
Frequency– Number of times a person is exposed to
advertisement.
Media Impact– The qualitative value of a message
exposure through a given medium.
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Choosing Media Type & Vehicles
Media Type: – consider the medium’s impact, message
effectiveness, and cost.
Media Vehicles:– Specific media within
each general media type
Factors to Consider:– Cost– Audience quality– Audience attention– Editorial quality
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Alternative Media
Marketing in Action
Can you think of any other examples?
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The Summit Combo unit offers the convenience of a refrigerator, freezer, and microwave combined into a single, compact, energy-efficient unit. The product is targeted towards people in college residence halls, assisted-living facilities, government offices, and business offices.
What media categories and vehicles would you use to reach these targets? Can you think of some alternative media that might be useful as well?
Let’s Talk!
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Must decide how to schedule the advertising over the course of a year.– Follow seasonal pattern– Oppose seasonal pattern– Same coverage all year
Choose the pattern of the ads– Continuity– Pulsing
Deciding on Media Timing
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Evaluating Advertising
Advertising accountability is becoming increasingly important to firms.
Evaluating advertising effectiveness involves:– Measuring the communication effects of an ad
—“Copy Testing” Is the proper message being communicated?
– Measuring the sales and profit effects of an ad. Is the ad increasing sales?
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Other Advertising Considerations
Organization of Ad Function– Small companies– Large companies– Advertising agency
International Advertising Issues– Standardization vs.
adaptation. – Costs and media
availability vary by country.
– Advertising practices are regulated differently in each country.
An example of standardized advertising
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Sales Promotion
Sales promotion consists of Sales promotion consists of short-term incentives to short-term incentives to
encourage the purchase of sales encourage the purchase of sales of a product or service.of a product or service.
The idea behind sales promotion is to generate immediate sales.
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Pull-Oriented Sales Promotions
Pull-oriented sales promotions are those that target the ultimate consumer and encourage consumers to prefer a particular brand to competitive offerings. Contests and coupons are two examples of pull-oriented sales promotions.
Marketing in Action
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Sales promotion can take the form of consumer, business, trade, or sales force promotions.
Rapid growth in the industry has been achieved because:– Product managers are facing more pressure to
increase their current sales– Companies face more competition– Advertising efficiency has declined– Consumers have become more deal oriented
Rapid Growth of Sales Promotion
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Consumer Promotion Objectives
Objectives for Consumer Sales Promotions:– Increase short-term sales. – Help build long-term
customer relationships.
Many tools exist that can help in accomplishing these objectives.
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Consumer Sales Promotion Tools
Coupons: provide a discount off the purchase price of the product when redeemed.
Cash Refunds: offer a refund of part of the purchase price after the item has been bought.
Price Packs: offer savings off the regular price of the product; marked on the package.
Samples: offer a trial amount of the product.
Premiums: goods offered for free or at a low price as an incentive to buy.
Advertising Specialties: useful items imprinted with the name or logo of the advertiser which are given as gifts to consumers.
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Consumer Sales Promotion Tools
Patronage Rewards: cash or other awards offered for regular use of a brand.
POP Displays: include signs and displays that exist at the point-of-sale.
Demonstrations: food or product in-store sampling.
Contests: entries are judged by a panel who selects the winner.
Sweepstakes: names are submitted for a random drawing.
Games: game pieces are given for each purchase. Some win instantly; others must fit a game pattern.
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Point-of-purchase displays can draw attention to the brand and stimulate impulse buys.
Why do you think many retailers resist using POP displays?
Let’s Talk!
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Objectives:– Persuade resellers to carry a brand.– Give a brand shelf space.– Promote brand in advertising.– Push brand to customers.
Tools:– Discounts, allowances, free goods, push
money, specialty advertising items.
Trade Promotion
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Objectives:– Generate business leads.– Stimulate purchases.– Reward customers.– Motivate salespeople.
Tools:– Conventions, trade shows, sales contests,
and many of the same tools used for consumer or trade promotions.
Business Promotion
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Decide on the size of the incentive Set conditions for participation Decide how to promote and distribute
the promotion program Decide the length of the program Evaluate the program
Developing the Sales Promotion Program
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Trade Shows
The International Consumer Electronics trade show attracts over 20,000 exhibitors and over 130,000 visitors.
Marketing in Action
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Public Relations
Public Relations: – Building good relations with the firm’s
various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.
Public Relations Functions:– Includes press relations or press agency,
product publicity, public affairs, lobbying, investor relations and development.
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Audiovisual materials
Corporate identity materials
Public service activities
Company Web site
News Speeches Special events Buzz marketing Mobile marketing Written materials
Public Relations Tools
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Public Relations
Scholastic sponsored low-cost sleepovers, games, and costume contests which effectively promoted the release of
the sixth Harry Potter book.
Marketing in Action
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Define the three steps of target marketing: market segmentation, market targeting, and market positioning.
List and discuss the major bases for segmenting consumer and business markets.
Explain how companies identify attractive market segments and choose a target marketing strategy.
Discuss how companies position their products for maximum competitive advantage in the marketplace.
Rest Area: Reviewing the Concepts