Lecture Principles of Marketing - Chapter 12: Communicating customer value

In this chapter you will learn: The promotion mix, integrated marketing communications, a view of the communications process, steps in developing effective marketing communication, setting the total promotion budget and mix, socially responsible marketing communication.

Chapter Twelve

Communicating Customer Value: Advertising, Sales Promotion, and

Public Relations

Roadmap: Previewing the Concepts

1 Discuss the process and advantages of

integrated marketing communications.

2 Define the five promotion tools and discuss

the factors that must be considered in

shaping the overall promotion mix.

3 Describe and discuss the major decisions

involved in developing an advertising

program.

4 Explain how sales promotion campaigns are

developed and implemented.

5 Explain how companies use public relations

The Agency

 Has recently won both

multiple creative awards

and several major

advertising accounts.

 Located in South Beach,

FL, far removed from

TV is used only sparingly.

 Street level research helps develop creative appeals.

 Tries to start a consumer movement behind the

brand, and campaigns go

The Marketing Communications (Promotion) Mix

New Communications Realities

leading to a shift away from mass

marketing.

technology are speeding movement

toward segmented marketing.

marketing communications model

– Less broadcasting

Integrated Marketing Communications

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.

Personal Selling

two or more people.

preferences, convictions and actions.

requires long-term commitment.

Sales Promotion

response.

Public Relations

and ads.

economical.

Promotion Mix Strategies

– Producer directs its marketing activities

toward channel members to induce them

to carry the product and promote it to the final consumers.

– Producer directs its marketing activities

toward final consumers to induce them to buy the product.

 Advertising has been used for centuries.

 U.S advertisers spend more than $264 billion each year; worldwide spending approaches

Major Advertising Decisions

Setting Advertising Objectives

– specific communication task to be

accomplished with a specific target

audience during a specific period of time.

– Inform

– Persuade

– Compare

Setting the Advertising Budget

Developing Advertising Strategy

 Consists of two major elements:

– Creating advertising messages

• Message strategy and 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.

The Message Strategy

the “Big Idea”

meaningful, believable, and distinctive

Setting Media Objectives

– The qualitative value of a message

exposure through a given medium.

Choosing Media Type

media type:

– Medium’s impact

– Message effectiveness

– Cost

Choosing Media Vehicles

Deciding on Media Timing

advertising over the course of a year.

– Follow seasonal pattern

– Oppose seasonal pattern

– Same coverage all year

– Continuity

– Pulsing

Evaluating Advertising

an ad—“Copy Testing”

– Is the ad increasing sales?

Other Advertising Considerations

Sales Promotion

incentives to encourage the purchase

or sales of a product or service.

Rapid Growth of Sales Promotion

 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

Consumer Promotion

– Increase short-term sales

– Help build long-term market share

achieve these objectives.

Consumer Sales Promotion Tools

 Patronage rewards

 Point-of-purchase displays

Trade Promotion

– Persuade resellers to carry a brand.

– Give a brand shelf space.

– Promote brand in advertising.

– Push brand to customers.

– Discounts, allowances, free goods, push

money, specialty advertising items.

– Conventions, trade shows, sales contests,

and many of the same tools used for

consumer or trade promotions.

Developing the Sales Promotion Program

the promotion program

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

Public Relations Role & Impact

at a lower cost than advertising.

important brand-building role.

Public Relations Tools

Rest Stop: Reviewing the Concepts

1 Discuss the process and advantages of

integrated marketing communications.

2 Define the five promotion tools and discuss

the factors that must be considered in shaping the overall promotion mix.

3 Describe and discuss the major decisions

involved in developing an advertising

program.

4 Explain how sales promotion campaigns are

developed and implemented.

5 Explain how companies use public relations to