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Communicating Communicating Customer Value:Customer Value:
Advertising and Public Relations
Chapter 12
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 2
1. Define the five promotion mix tools for communicating customer value.
2. Discuss the changing communications landscape and the need for integrated marketing communications.
3. Describe and discuss the major decisions involved in developing an advertising program.
4. Explain how companies use public relations to communicate with their publics.
Rest Stop:Rest Stop: Previewing the ConceptsPreviewing the Concepts
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 3
Unilever Integrates Digital & Traditional Media
First StopFirst Stop
Background About Unilever: World’s # 2
advertiser spends $5.3 billion on global advertising and promotion. Less is being spent on traditional media; more is being invested in online and digital.
Recognition: Unilever was named digital marketer of the year by Advertising Age. However, Unilever does not run digital campaigns in isolation of other media; rather, digital is integrated with traditional media.
Implementation How They Do It: Innovative
websites, viral videos, and “webisodes” represent key digital content. Real, funny TV ads pull viewers to websites to build consumer involvement with brand. Public relations gets clips aired on talk shows.
Results: The key benefit of all integrated efforts is termed “superdistribution”, which means digital clips are picked up and shown by other media for free. “Evolution” created $200 million in free media coverage.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 4
Promotion MixPromotion Mix
Specific blend of promotion Specific blend of promotion tools that the company uses to tools that the company uses to persuasively communicatepersuasively communicate
customer value and build customer value and build customer relationships.customer relationships.
Also referred to as “marketing communications mix”.
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Figure 12.1:Figure 12.1:
Integrated Marketing Integrated Marketing CommunicationsCommunications
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 6
Integrated Marketing Integrated Marketing CommunicationsCommunications
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 Marketing Communications (IMC)Communications (IMC)
Carefully integrating and Carefully integrating and coordinating the company’s many coordinating the company’s many communication channels to communication channels to deliver a clear, consistent, and deliver a clear, consistent, and compelling message about the compelling message about the organization and its products.organization and its products.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 8
Integrated Marketing Integrated Marketing CommunicationsCommunications
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.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 9
Marketing in ActionMarketing in Action
Burger King’s 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%!
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 10
Shaping the Overall Promotion MixShaping the Overall Promotion 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.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 11
Shaping the Overall Promotion MixShaping the Overall Promotion 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.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 12
Marketing in ActionMarketing in Action
With personal selling, customers feel a greater need to listen and respond. Two-way communication is a key strength of selling compared to other forms of marketing communications.
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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.
Shaping the Overall Promotion MixShaping the Overall Promotion Mix
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 14
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.
Shaping the Overall Promotion MixShaping the Overall Promotion Mix
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 15
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.
Shaping the Overall Promotion MixShaping the Overall Promotion Mix
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Figure 12.2:Figure 12.2:
Push vs. Pull Promotion StrategyPush vs. Pull Promotion Strategy
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AdvertisingAdvertising
Advertising has been used for centuries.
U.S. advertisers spend more than $290 billion each year; worldwide spending exceeds $604 billion.
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AdvertisingAdvertising
Advertising is used by:– Business firms.– Not-for-profit
organizations.– Professionals.– Social agencies.– Government.
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Figure 12.3:Figure 12.3:
Major Advertising DecisionsMajor Advertising Decisions
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Major Advertising DecisionsMajor Advertising Decisions
Advertising objective:– A specific communication task to be
accomplished with a specific target audience during a specific period of time.
Overall advertising goal is to help build customer relationships by communicating customer value.
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Major Advertising DecisionsMajor Advertising Decisions
Advertising objectives can be classified by purpose:– Informative
advertising.– Persuasive advertising.– Comparative
advertising (a special type of persuasive advertising).
– Reminder advertising.
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Fuel For Fuel For ThoughtThought
What is the objective of this ad for De Beers diamonds?
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Major Advertising DecisionsMajor Advertising Decisions
Setting the advertising budget:– Affordable method.– Percentage-of-sales
method.– Competitive-parity
method.– Objective-and-task
method.$
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Marketing in ActionMarketing in Action
Audi gained a competitive advantage by spending heavily on advertising and promotion at a time when rivals were retrenching.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 25
Developing advertising strategy:– Creating advertising
messages.• Message strategy and
message execution must break through the clutter.
• Advertising is being merged with entertainment.
Major Advertising DecisionsMajor Advertising Decisions
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 26
““Madison & Vine”Madison & Vine”
A term that has come to represent A term that has come to represent the merging of advertising the merging of advertising entertainment in an effort to break entertainment in an effort to break through the clutter and create new through the clutter and create new avenues for reaching consumers avenues for reaching consumers with more engaging messages.with more engaging messages.
Visit the Adverblog’s archive on Advertainment for current examples.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 27
Marketing in ActionMarketing in Action
Ad agency JWT attempted to promote its “Madison & Vine” philosophy to potential business partners with this ad.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 28
Major Advertising DecisionsMajor 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 DecisionsMajor Advertising Decisions
Technical expertise
Scientific evidence
Testimonial evidence or endorsement
Slice of Life Lifestyle Fantasy Mood or image Musical Personality
symbol
Message Execution Styles:
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Major Advertising DecisionsMajor Advertising Decisions
Message execution process:– Choose the execution style.– Choose a tone.
• Use memorable, attention-getting words.– Choose format elements:
• Illustration.• Headline.• Copy.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 31
Fuel For ThoughtFuel For Thought
What is the message execution style?What is the tone of the ad?Are the words used attention-getting and memorable?How does the illustration work with the rest of the ad?
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 32
Major Advertising DecisionsMajor 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.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 33
Marketing in ActionMarketing in Action
The Doritos “Crash the Super Bowl” ads are among the top-rated ads on USA Today’s 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.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 34
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.
Major Advertising DecisionsMajor Advertising Decisions
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 35
Major Advertising DecisionsMajor 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.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 36
Major Advertising DecisionsMajor Advertising Decisions
Each media type has specific advantages and disadvantages.
Choosing among media types requires consideration of the:– Medium’s impact– Message effectiveness– Cost
The media mix should be regularly reexamined.
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Major Advertising DecisionsMajor 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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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.
Major Advertising DecisionsMajor Advertising Decisions
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Marketing in ActionMarketing 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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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.
Evaluating Advertising and Return Evaluating Advertising and Return on Advertising Investmenton Advertising Investment
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Marketing in ActionMarketing 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.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 42
Organization of ad function:– Small companies—one person in firm.– Large companies—ad department that may
also work with an ad agency.– Advertising agencies employ specialists who
perform ad tasks better then the company’s own staff can.
• Bring outside viewpoints to problem-solving.• Wide range of experience.
Other Advertising ConsiderationsOther Advertising Considerations
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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.
Other Advertising ConsiderationsOther Advertising Considerations
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Public RelationsPublic Relations
Building good relations with Building good relations with the firm’s various publics by the firm’s various publics by obtaining favorable publicity, obtaining favorable publicity, building up a good corporate building up a good corporate image, and handling or image, and handling or heading off unfavorable heading off unfavorable rumors, stories, and events.rumors, stories, and events.
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Public RelationsPublic 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 Relations Role and ImpactImpact
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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Marketing in ActionMarketing in Action
Starting with preview events like the one shown above, Nintendo’s 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 ToolsMajor Public Relations Tools
Corporate identity materials
Public service activities
Buzz marketing & social networking
Company Web site
News Speeches Special events Written
materials Audiovisual
materials
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 49
1. Define the five promotion mix tools for communicating customer value.
2. Discuss the changing communications landscape and the need for integrated marketing communications.
3. Describe and discuss the major decisions involved in developing an advertising program.
4. Explain how companies use public relations to communicate with their publics.
Rest Stop:Rest Stop: Reviewing the ConceptsReviewing the Concepts
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 50
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.
Copyright © 2011 Pearson Education, Inc. Copyright © 2011 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall