chapter 12 communicating customer value advertising and public relations communicating customer...

Chapter 12

Communicating Communicating Customer Value Customer Value

Advertising and Public Advertising and Public RelationsRelations

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


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.

Unilever Integrates Digital & Traditional MediaFirst Stop

Implementation

• How They Do It: Innovative Web sites, viral videos, and “webisodes” represent key digital content. Real, funny TV ads pull viewers to Web sites 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.


• Promotion mix (also called marketing communications mix):Specific blend of promotion tools that

the company uses to persuasively communicate customer value and build customer relationships.

The Promotion Mix


• The company’s total promotion mix consists of a specific blend of:Advertising.Sales promotion.Public relations.Personal selling.Direct marketing.

The Promotion Mix


• 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.

Integrated Marketing Communications


Integrated Marketing Communications

• Integrated marketing communications (IMC) defined:Carefully integrating and coordinating the

company’s many communication channels to deliver a clear, consistent, and compelling message about the organization and its products.

• A strong need for integrated marketing communications exists.

• Marketers must understand each promotion tool when shaping the marketing communications mix.


Shaping 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.


• 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.




• 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.



• 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.


• 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.



Promotion Mix Strategies

• Push strategy:Promotion strategy that calls for using

the sales force and trade promotion to push the product through channels.

• Pull strategy:Promotion strategy that calls for

spending a lot on advertising and consumer promotion to induce final consumers to buy the product.


Advertising

• Advertising has been used for centuries.

• U.S. advertisers spend more than $290 billion each year; worldwide spending exceeds $604 billion.

• Advertising is used by: Business firms. Not-for-profit organizations. Professionals. Social agencies. Government.


Major Advertising Decisions

• Setting advertising objectives.

• Setting the advertising budget.

• Developing advertising strategy.

• Evaluating advertising campaigns.



• 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.



• Advertising objectives can be classified by purpose:Informative advertising.Persuasive advertising.Comparative advertising (a special type

of persuasive advertising).Reminder advertising.



• Setting the advertising budget:Affordable method.Percentage-of-sales method.Competitive-parity method.Objective-and-task method.


• Developing advertising strategy:Creating advertising messages.

• Message strategy and message execution must break through the clutter.

• Advertising is being merged with entertainment.

Selecting advertising media.• Set reach, frequency, and impact goals.• Choose among major media types.• Select specific media vehicles.• Decide on media timing.




• Planning the message strategy:Identify customer benefits that can be

used as advertising appeals.Develop compelling creative concept—

the “big idea.”Choose an advertising appeal that is:

• Meaningful.• Believable.• Distinctive.



• Technical expertise

• Scientific evidence

• Testimonial evidence or endorsement

• Slice of Life

• Lifestyle

• Fantasy

• Mood or image

• Musical

• Personality symbol

Message Execution Styles:



• Message execution process:Choose the execution style.Choose a tone.

• Use memorable, attention-getting words.Choose format elements:

• Illustration.• Headline.• Copy.



• 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.



• Steps in advertising media selection:Deciding on reach, frequency, impact.Choosing among media types.Selecting specific media vehicles.Deciding on media timing.



• 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.



• Each media type has specific advantages and disadvantages.

• Choosing among media types requires consideration of the:Medium’s impactMessage effectivenessCost

• The media mix should be regularly reexamined.



• 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.



• 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.


Evaluating Advertising and Return on Advertising 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.


Other Advertising Considerations

• 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 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.


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

• Public relations departments perform the following functions:Press relations or press agency.Product publicity.Public affairs.Lobbying.Investor relations.Development.


Public Relations Role and 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.


Major Public Relations Tools

• Corporate identity materials

• Public service activities

• Buzz marketing & social networking

• Company Web site

• News

• Speeches

• Special events

• Written materials

• Audiovisual materials


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: Reviewing the Concepts

chapter 12 communicating customer value advertising and public relations communicating customer...

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