Value:
Customer
Advertising Communicating
Customer and Public
Relations
Chapter
12
Rest Stop: Previewing the
Concepts
Concepts
1.
2.
3.
4.
Define the five promotion mix tools
for communicating customer value.
Discuss the changing
communications landscape and the
need for integrated marketing
communications.
Describe and discuss the major
decisions involved in developing an
advertising program.
Explain how companies use public
relations to communicate with their
publics.
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12 - 2
First Stop
Unilever Integrates Digital & Traditional Media
Background
Implementation
About Unilever: Worlds # How They Do It: Innovative
2 advertiser spends $5.3
websites, viral videos, and
billion on global advertising
webisodes represent key
and promotion. Less is
digital content. Real, funny TV
being spent on traditional
ads pull viewers to websites to
media; more is being
build consumer involvement
invested in online and
with brand. Public relations
digital.
gets clips aired on talk shows.
Recognition: Unilever
Results: The key benefit of all
was named digital
integrated efforts is termed
marketer of the year by
superdistribution, which
Advertising Age. However,
means digital clips are picked
Unilever does not run
up and shown by other media
digital campaigns in
for free. Evolution created
isolation of other media;
$200 million in free media
rather, digital is integrated
coverage.
with traditional media.
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Promotion Mix
Specific blend of promotion
tools that the company uses
to persuasively
communicate customer
communicate
value and build customer
relationships.
relationships.
Also referred to as marketing
communications mix.
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Figure 12.1:
Integrated Marketing
Communications
Communications
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Integrated Marketing
Integrated
Communications
Communications
Several factors are changing the
face of marketing communications:
Consumers.
Marketing strategies.
Communication technology.
These factors have shifted the
marketing communications model
so that firms are doing less
broadcasting and more
narrowcasting.
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Integrated Marketing
Integrated
Communications (IMC)
Communications
Carefully integrating and
coordinating the companys
many communication channels
to deliver a clear, consistent,
and compelling message about
the organization and its
products.
products.
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Integrated Marketing
Integrated
Communications
Communications
A strong need for integrated
marketing communications exists.
Conflicting messages from different
sources can create confusion or blur
brand perceptions.
Marketers must understand each
promotion tool when shaping the
marketing communications mix.
Each brand contact delivers a
message.
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Marketing in Action
Burger Kings integrated, multipronged
Whopper Freakout campaign employed
a carefully coordinated mix of TV, radio,
rich media banner ads, and a
Freakout web site. Successful? You
bet! Sales grew by 29%!
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12 - 9
Shaping the Overall Promotion
Shaping
Mix
Mix
Nature of advertising:
Can reach masses of geographically
dispersed buyers at a low cost per
exposure.
Can repeat a message many times.
Consumers view advertised products
as more legitimate.
Is impersonal, one-way
communication.
Can be very costly for some media
types.
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12 - 10
Shaping the Overall Promotion
Shaping
Mix
Mix
Nature of personal selling:
Involves personal interaction between two
or more people.
Most effective tool at building preferences,
convictions, and actions.
Allows relationship building and two-way
communication.
Requires long-term commitment to sales
force.
Most expensive promotion tool.
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12 - 11
Marketing in Action
With personal
selling, customers
feel a greater
need to listen and
respond. Twoway
communication is
a key strength of
selling compared
to other forms of
marketing
communications.
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12 - 12
Shaping the Overall Promotion
Shaping
Mix
Mix
Nature of sales promotion:
Includes a wide assortment of tools.
Attracts consumer attention.
Can be used to dramatize product
offers.
Offers strong incentives to buy.
Invites and rewards quick consumer
response.
Effects are short-lived.
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12 - 13
Shaping the Overall Promotion
Shaping
Mix
Mix
Nature of 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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12 - 14
Shaping the Overall Promotion
Shaping
Mix
Mix
Nature of direct marketing:
Many forms of direct marketing exist.
Direct marketing forms share four primary
characteristics:
Less public.
Immediate.
Customized.
Interactive.
Well suited to highly targeted marketing.
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12 - 15
Figure 12.2:
Push vs. Pull Promotion
Strategy
Strategy
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12 - 16
Advertising
Advertising has
been used for
centuries.
U.S. advertisers
spend more than
$290 billion each
year; worldwide
spending
exceeds $604
billion.
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12 - 17
Advertising
Advertising is
used by:
Business firms.
Not-for-profit
organizations.
Professionals.
Social
agencies.
Government.
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12 - 18
Figure 12.3:
Major Advertising Decisions
Major
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12 - 19
Major Advertising Decisions
Advertising objective:
A specific communication task to be
accomplished with a specific target
audience during a specific period of
time.
Overall advertising goal is to help
build customer relationships by
communicating customer value.
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Major Advertising Decisions
Advertising
objectives can be
classified by
purpose:
Informative
advertising.
Persuasive
advertising.
Comparative
advertising (a special
type of persuasive
advertising).
Reminder
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12 - 21
Fuel For
Fuel
Thought
Thought
What is the
objective of
this ad for
De Beers
diamonds?
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12 - 22
Major Advertising Decisions
$
Setting the
advertising budget:
Affordable method.
Percentage-ofsales method.
Competitive-parity
method.
Objective-and-task
method.
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12 - 23
Marketing in Action
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Audi gained a
competitive
advantage by
spending
heavily on
advertising and
promotion at a
time when rivals
were
retrenching.
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Major Advertising Decisions
Developing
advertising strategy:
Creating advertising
messages.
Message strategy
and message
execution must
break through the
clutter.
Advertising is being
merged with
entertainment.
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12 - 25
Madison & Vine
A term that has come to
represent the merging of
advertising entertainment in an
effort to break through the
clutter and create new avenues
for reaching consumers with
more engaging messages.
more
Visit the Adverblogs archive on
Advertainment for current examples.
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12 26
Marketing - in Action
Ad agency JWT attempted to promote its
Madison & Vine philosophy to potential
business partners with this ad.
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12 - 27
Major Advertising Decisions
Planning the message strategy:
Identify customer benefits that can
be used as advertising appeals.
Develop compelling creative concept
the big idea.
Choose an ad advertising appeal that
is:
Meaningful.
Believable.
Distinctive.
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Major Advertising Decisions
Message Execution Styles:
Slice of Life
Lifestyle
Fantasy
Mood or
image
Musical
Personality
symbol
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Technical
expertise
Scientific
evidence
Testimonial
evidence or
endorsement
12 - 29
Major Advertising Decisions
Message execution process:
Choose the execution style.
Choose a tone.
Use memorable, attention-getting
words.
Choose format elements:
Illustration.
Headline.
Copy.
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12 - 30
Fuel For Thought
What is the
message
execution style?
What is the tone of
the ad?
Are the words
used attentiongetting and
memorable?
How does the
illustration work
with the rest of the
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12 - 31
Major Advertising Decisions
Consumer-generated messages:
Tapping consumers for message ideas or
actual ads can involve:
Searching existing Web video sites.
Holding contests or inviting consumers to
submit ad message ideas and videos.
Benefits of consumer-generated
messages:
Collects new ideas and fresh brand
perspectives at relatively little expense.
Boosts consumer involvement and gets
consumers talking and thinking about the
brand.
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12 - 32
Marketing in Action
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall
The Doritos Crash
the Super Bowl
ads are among the
top-rated ads on
USA Todays Super
Bowl Ad Meter.
Visit the Crash
web site to learn
how you can
submit your ad and
to view the ads
created by the most
recent winners.
12 - 33
Major Advertising Decisions
Developing advertising strategy:
Selecting advertising media.
Set reach, frequency, and impact
goals.
Choose among major media types.
Select specific media vehicles.
Decide on media timing.
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12 - 34
Major Advertising Decisions
Deciding on reach, frequency,
impact:
Reach: Percentage of people
exposed to ad campaign in a given
time period.
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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12 - 35
Major Advertising Decisions
Each media type has
specific advantages and
disadvantages.
Choosing among media
types requires
consideration of the:
Mediums impact
Message effectiveness
Cost
The media mix should
be regularly
reexamined.
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12 - 36
Major Advertising Decisions
Media vehicles:
Specific media within each general media
type, such as Newsweek.
Factors to consider when choosing
vehicles:
Cost.
Audience quality.
Audience engagement.
Editorial quality.
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Major Advertising Decisions
Marketers must also decide on media
timing, or 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.
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Marketing in Action
Many products,
services, and
retailers
advertise more
heavily before
special holidays,
new seasons, or
even particular
times of the
year, such as
Back to
School.
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Evaluating Advertising and
Evaluating
Return on Advertising
Investment
Investment
Return on advertising investment:
The net return on advertising investment
divided by the costs of the advertising
investment.
Evaluating advertising involves:
Measuring the communication effects of
an ad or campaign.
Measuring the sales and profit effects of
the ad campaign.
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Marketing in Action
The 2010 Super
Bowl drew the single
largest TV audience
ever in the US (105
million), with ad
prices ranging from $
2.8 to $3 million for a
30 second spot.
Was it worth it??
Learn how Nielsen
measures
ROI for Super Bowl ads
.
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Other Advertising
Other
Considerations
Considerations
Organization of ad function:
Small companiesone person in firm.
Large companiesad department that
may also work with an ad agency.
Advertising agencies employ specialists
who perform ad tasks better then the
companys own staff can.
Bring outside viewpoints to problemsolving.
Wide range of experience.
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Other Advertising
Other
Considerations
Considerations
International advertising issues:
To what degree should global
advertising be adapted to various
countries?
Greater need for standardization of
global brand advertising strategies.
Specific advertising programs must
usually be adapted to local cultures
and other factors.
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Public Relations
Building good relations with
the firms various publics by
obtaining favorable publicity,
building up a good
corporate image, and
handling or heading off
unfavorable rumors, stories,
and events.
and
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Public Relations
Public relations departments
perform the following functions:
Press relations or press agency.
Product publicity.
Public affairs.
Lobbying.
Investor relations.
Development.
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Public Relations Role and
Public
Impact
Impact
Public relations:
May strongly impact public
awareness at a lower cost than
advertising.
Can yield spectacular results.
Is beginning to play an increasingly
important brand-building role.
Advertising and PR can work together in
unintended ways. Watch this clip to see more!
Click on filmstrip icon at left to play video
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12 - 46
Marketing in Action
Starting with preview events like the one
shown above, Nintendos award-winning PR
campaign for its new Wii game produced
nonstep stock-outs for more than two years.
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Major Public Relations
Major
Tools
Tools
News
Speeches
Special
events
Written
materials
Audiovisual
materials
Corporate identity
materials
Public service
activities
Buzz marketing &
social networking
Company Web site
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12 - 48
1.
2.
3.
4.
Rest Stop: Reviewing the
Concepts
Concepts
Define the five promotion mix tools
for communicating customer value.
Discuss the changing
communications landscape and the
need for integrated marketing
communications.
Describe and discuss the major
decisions involved in developing an
advertising program.
Explain how companies use public
relations to communicate with their
publics.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall
12 - 49
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright2011PearsonEducation,Inc.
PublishingasPrenticeHall
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