Description
Learning Objectives
• Define the five promotion mix tools for
communicating customer value.
• Discuss the changing communications
landscape and the need for integrated
marketing communications.
Copyright © 2015 Pearson Education Ltd.
12 – 2
Learning Objectives
• Describe and discuss the major decisions
involved in developing an advertising
program.
• Explain how companies use public relations
to communicate with their publics.
Copyright © 2015 Pearson Education Ltd.
12 – 3
First Stop: Tecso: Every Little Helps
• Came up with an enduring integrated
marketing communications campaign
• Key to the campaign’s success
• Consistency
• The “Every Little Helps” slogan, which
communicates the brand’s unique proposition
• Marketing information on social media are
coherently integrated with other traditional
media to echo the same message.
Copyright © 2015 Pearson Education Ltd.
12 – 4
Promotion Mix
• Specific blend of promotion tools
• Used by companies to:
• Engage consumers and persuasively
communicate customer value
• Build customer relationships
• Major promotion tools:
• Advertising and sales promotion
• Personal selling and public relations
• Direct and digital marketing
Copyright © 2015 Pearson Education Ltd.
12 – 5
New Marketing
Communications Model
• Factors changing marketing communications:
• Changing consumers
• Changing marketing strategies
• Advancements in communications technology
Copyright © 2015 Pearson Education Ltd.
12 – 6
New Marketing
Communications Model
• Marketers can reach smaller consumer
segments in interactive and engaging ways.
• Mix of both traditional mass media and a
wide array of online, mobile, and social media
• Brand content managers create and inspire
brand messages and conversations.
• Share with and among consumers across a fluid
mix of paid, owned, earned, and shared channels
Copyright © 2015 Pearson Education Ltd.
12 – 7
Figure 12.1 – Integrated
Marketing Communications
Copyright © 2015 Pearson Education Ltd.
12 – 8
Nature of the Promotion Tools
Promotion tool
Description
Advertising
•
•
•
•
•
•
Reaches masses of buyers at a low cost per exposure
Builds a long-term image for a product
Can trigger quick sales
Has a public nature and is viewed as legitimate
Very expressive
Impersonal and lacks the direct persuasiveness of
salespeople
Personal selling
•
•
•
•
Personal interaction between two or more people
Allows all kinds of customer relationships to spring up
Buyer feels a greater need to listen and respond
Most expensive promotion tool
Copyright © 2015 Pearson Education Ltd.
12 – 9
Nature of the Promotion Tools
Promotion tool
Description
Sales promotion
•
•
•
•
•
•
Wide assortment of tools with unique qualities
Attracts consumer attention
Offers strong incentives to purchase
Used to dramatize product offers and boost sales
Invites and rewards quick response
Short-lived effects; less effective than advertising or
personal selling in building long-term relationships
Public relations
•
•
•
•
Very believable to readers
Can dramatize a company or product
Reaches many prospects
Effective and economical when well thought out
Direct and digital
marketing
• More targeted and interactive
• Immediate and personalized
Copyright © 2015 Pearson Education Ltd.
12 – 10
Figure 12.2 – Push versus Pull
Promotion Strategy
Copyright © 2015 Pearson Education Ltd.
12 – 11
Major Advertising Decisions
Message
decisions
Objectives
setting
Budget
decisions
Advertising
evaluation
Media
decisions
Copyright © 2015 Pearson Education Ltd.
12 – 12
Table 12.2 – Possible
Advertising Objectives
Copyright © 2015 Pearson Education Ltd.
12 – 13
Methods of Setting the
Advertising Budget
Affordable
method
Percentage-ofsales method
Competitiveparity method
Objective-andtask method
Copyright © 2015 Pearson Education Ltd.
12 – 14
Advertising Strategy
• Accomplishes the company’s advertising
objectives
• Major advertising strategy elements:
• Creating advertising messages
• Selecting advertising media
Copyright © 2015 Pearson Education Ltd.
12 – 15
Creating the Advertising Message
•
•
•
•
•
Breaking through the clutter
Merging advertising and entertainment
Planning a message strategy
Executing the message
Using consumer-generated content
Copyright © 2015 Pearson Education Ltd.
12 – 16
Selecting Advertising Media
• Advertising media: Vehicles through which
advertising messages are delivered to their
intended audiences
• Steps in advertising media selection:
•
•
•
•
Determining reach, frequency, and impact
Choosing among major media types
Selecting specific media vehicles
Choosing media timing
Copyright © 2015 Pearson Education Ltd.
12 – 17
Profiles of Major Media Types
Medium
Advantages
Newspapers •
•
•
•
Flexibility
Timeliness
Good local market coverage
Broad acceptability and high
believability
•
•
• High audience selectivity
• Flexibility
• No ad competition within the
same medium
• Allows personalization
•
Direct mail
Copyright © 2015 Pearson Education Ltd.
Limitations
•
•
Short life
Poor reproduction
quality
Small pass-along
audience
Relatively high cost per
exposure
Junk mail image
12 – 18
Profiles of Major Media Types
Medium
Advantages
High geographic and demographic
selectivity
Credibility and prestige
High-quality reproduction
Long life and good pass-along
readership
•
•
•
Long ad purchase lead time
High cost
No guarantee of position
Radio
• Good local acceptance
• High geographic and demographic
selectivity
• Low cost
•
•
•
•
Audio only
Fleeting exposure
Low attention
Fragmented audiences
Outdoor
•
•
•
•
•
•
•
Little audience selectivity
Creative limitations
Magazines
•
Limitations
•
•
•
Flexibility
High repeat exposure
Low cost
Low message competition
Good positional selectivity
Copyright © 2015 Pearson Education Ltd.
12 – 19
Evaluating Advertising Effectiveness &
Return on Advertising Investment
• Return on advertising investment: Net return
on advertising investment divided by the
costs of the advertising investment
• Advertisers should regularly evaluate:
• Communication effects
• Sales and profit effects
Copyright © 2015 Pearson Education Ltd.
12 – 20
Organizing for Advertising
• Small firms may use their sales department
staff.
• Large companies may have their own
advertising departments.
• Advertising agency: Assists companies in
planning, preparing, implementing, and
evaluating all or portions of their advertising
programs
Copyright © 2015 Pearson Education Ltd.
12 – 21
International Advertising Decisions:
Standardization
• Benefits
• Lower advertising costs
• Greater global advertising coordination
• More consistent worldwide image
• Drawback
• Ignores the fact that country markets differ in
cultures, demographics, and economic
conditions
Copyright © 2015 Pearson Education Ltd.
12 – 22
Problems Faced by
Global Advertisers
• Countries differ in:
• Media costs and availability
• Advertising practices
• Diversity between countries requires
advertisers to adapt their campaigns to meet
local:
• Cultures and customs
• Media characteristics
• Regulations
Copyright © 2015 Pearson Education Ltd.
12 – 23
Functions of Public Relations
(PR) Department
Press relations
or press
agency
Product
publicity
Public affairs
Lobbying
Investor
relations
Development
Copyright © 2015 Pearson Education Ltd.
12 – 24
Public Relations
• Promotes products, people,
ideas, organizations, and
nations
• Builds good relations with
consumers, investors, the
media, and communities
• Rebuilds interest in
commodities for trade
associations
Copyright © 2015 Pearson Education Ltd.
12 – 25
Role and Impact of PR
• Strong impact on public awareness at a lower
cost than advertising
• Power to engage consumers and make them
part of the brand’s story
• Limited and scattered use
• Powerful brand-building tool
Copyright © 2015 Pearson Education Ltd.
12 – 26
Major Public Relations Tools
News
Special events
Written
materials
Audiovisual
materials
Corporate
identity
materials
Public service
activities
Copyright © 2015 Pearson Education Ltd.
12 – 27
Learning Objectives
• Define the five promotion mix tools for
communicating customer value.
• Discuss the changing communications
landscape and the need for integrated
marketing communications.
Copyright © 2015 Pearson Education Ltd.
12 – 28
Learning Objectives
• Describe and discuss the major decisions
involved in developing an advertising
program.
• Explain how companies use public relations
to communicate with their publics.
Copyright © 2015 Pearson Education Ltd.
12 – 29
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 © 2015 Pearson Education, Inc.
Activity 2 – Push and Pull strategy
Q1: From you understanding in the class (Chapter 6) give a brief definition of
pull strategy and push strategy with Examples?
Q2: What is the best strategy?
• Define the five promotion mix tools for
communicating customer value.
• Discuss the changing communications
landscape and the need for integrated
marketing communications.
Copyright © 2015 Pearson Education Ltd.
12 – 2
Learning Objectives
• Describe and discuss the major decisions
involved in developing an advertising
program.
• Explain how companies use public relations
to communicate with their publics.
Copyright © 2015 Pearson Education Ltd.
12 – 3
First Stop: Tecso: Every Little Helps
• Came up with an enduring integrated
marketing communications campaign
• Key to the campaign’s success
• Consistency
• The “Every Little Helps” slogan, which
communicates the brand’s unique proposition
• Marketing information on social media are
coherently integrated with other traditional
media to echo the same message.
Copyright © 2015 Pearson Education Ltd.
12 – 4
Promotion Mix
• Specific blend of promotion tools
• Used by companies to:
• Engage consumers and persuasively
communicate customer value
• Build customer relationships
• Major promotion tools:
• Advertising and sales promotion
• Personal selling and public relations
• Direct and digital marketing
Copyright © 2015 Pearson Education Ltd.
12 – 5
New Marketing
Communications Model
• Factors changing marketing communications:
• Changing consumers
• Changing marketing strategies
• Advancements in communications technology
Copyright © 2015 Pearson Education Ltd.
12 – 6
New Marketing
Communications Model
• Marketers can reach smaller consumer
segments in interactive and engaging ways.
• Mix of both traditional mass media and a
wide array of online, mobile, and social media
• Brand content managers create and inspire
brand messages and conversations.
• Share with and among consumers across a fluid
mix of paid, owned, earned, and shared channels
Copyright © 2015 Pearson Education Ltd.
12 – 7
Figure 12.1 – Integrated
Marketing Communications
Copyright © 2015 Pearson Education Ltd.
12 – 8
Nature of the Promotion Tools
Promotion tool
Description
Advertising
•
•
•
•
•
•
Reaches masses of buyers at a low cost per exposure
Builds a long-term image for a product
Can trigger quick sales
Has a public nature and is viewed as legitimate
Very expressive
Impersonal and lacks the direct persuasiveness of
salespeople
Personal selling
•
•
•
•
Personal interaction between two or more people
Allows all kinds of customer relationships to spring up
Buyer feels a greater need to listen and respond
Most expensive promotion tool
Copyright © 2015 Pearson Education Ltd.
12 – 9
Nature of the Promotion Tools
Promotion tool
Description
Sales promotion
•
•
•
•
•
•
Wide assortment of tools with unique qualities
Attracts consumer attention
Offers strong incentives to purchase
Used to dramatize product offers and boost sales
Invites and rewards quick response
Short-lived effects; less effective than advertising or
personal selling in building long-term relationships
Public relations
•
•
•
•
Very believable to readers
Can dramatize a company or product
Reaches many prospects
Effective and economical when well thought out
Direct and digital
marketing
• More targeted and interactive
• Immediate and personalized
Copyright © 2015 Pearson Education Ltd.
12 – 10
Figure 12.2 – Push versus Pull
Promotion Strategy
Copyright © 2015 Pearson Education Ltd.
12 – 11
Major Advertising Decisions
Message
decisions
Objectives
setting
Budget
decisions
Advertising
evaluation
Media
decisions
Copyright © 2015 Pearson Education Ltd.
12 – 12
Table 12.2 – Possible
Advertising Objectives
Copyright © 2015 Pearson Education Ltd.
12 – 13
Methods of Setting the
Advertising Budget
Affordable
method
Percentage-ofsales method
Competitiveparity method
Objective-andtask method
Copyright © 2015 Pearson Education Ltd.
12 – 14
Advertising Strategy
• Accomplishes the company’s advertising
objectives
• Major advertising strategy elements:
• Creating advertising messages
• Selecting advertising media
Copyright © 2015 Pearson Education Ltd.
12 – 15
Creating the Advertising Message
•
•
•
•
•
Breaking through the clutter
Merging advertising and entertainment
Planning a message strategy
Executing the message
Using consumer-generated content
Copyright © 2015 Pearson Education Ltd.
12 – 16
Selecting Advertising Media
• Advertising media: Vehicles through which
advertising messages are delivered to their
intended audiences
• Steps in advertising media selection:
•
•
•
•
Determining reach, frequency, and impact
Choosing among major media types
Selecting specific media vehicles
Choosing media timing
Copyright © 2015 Pearson Education Ltd.
12 – 17
Profiles of Major Media Types
Medium
Advantages
Newspapers •
•
•
•
Flexibility
Timeliness
Good local market coverage
Broad acceptability and high
believability
•
•
• High audience selectivity
• Flexibility
• No ad competition within the
same medium
• Allows personalization
•
Direct mail
Copyright © 2015 Pearson Education Ltd.
Limitations
•
•
Short life
Poor reproduction
quality
Small pass-along
audience
Relatively high cost per
exposure
Junk mail image
12 – 18
Profiles of Major Media Types
Medium
Advantages
High geographic and demographic
selectivity
Credibility and prestige
High-quality reproduction
Long life and good pass-along
readership
•
•
•
Long ad purchase lead time
High cost
No guarantee of position
Radio
• Good local acceptance
• High geographic and demographic
selectivity
• Low cost
•
•
•
•
Audio only
Fleeting exposure
Low attention
Fragmented audiences
Outdoor
•
•
•
•
•
•
•
Little audience selectivity
Creative limitations
Magazines
•
Limitations
•
•
•
Flexibility
High repeat exposure
Low cost
Low message competition
Good positional selectivity
Copyright © 2015 Pearson Education Ltd.
12 – 19
Evaluating Advertising Effectiveness &
Return on Advertising Investment
• Return on advertising investment: Net return
on advertising investment divided by the
costs of the advertising investment
• Advertisers should regularly evaluate:
• Communication effects
• Sales and profit effects
Copyright © 2015 Pearson Education Ltd.
12 – 20
Organizing for Advertising
• Small firms may use their sales department
staff.
• Large companies may have their own
advertising departments.
• Advertising agency: Assists companies in
planning, preparing, implementing, and
evaluating all or portions of their advertising
programs
Copyright © 2015 Pearson Education Ltd.
12 – 21
International Advertising Decisions:
Standardization
• Benefits
• Lower advertising costs
• Greater global advertising coordination
• More consistent worldwide image
• Drawback
• Ignores the fact that country markets differ in
cultures, demographics, and economic
conditions
Copyright © 2015 Pearson Education Ltd.
12 – 22
Problems Faced by
Global Advertisers
• Countries differ in:
• Media costs and availability
• Advertising practices
• Diversity between countries requires
advertisers to adapt their campaigns to meet
local:
• Cultures and customs
• Media characteristics
• Regulations
Copyright © 2015 Pearson Education Ltd.
12 – 23
Functions of Public Relations
(PR) Department
Press relations
or press
agency
Product
publicity
Public affairs
Lobbying
Investor
relations
Development
Copyright © 2015 Pearson Education Ltd.
12 – 24
Public Relations
• Promotes products, people,
ideas, organizations, and
nations
• Builds good relations with
consumers, investors, the
media, and communities
• Rebuilds interest in
commodities for trade
associations
Copyright © 2015 Pearson Education Ltd.
12 – 25
Role and Impact of PR
• Strong impact on public awareness at a lower
cost than advertising
• Power to engage consumers and make them
part of the brand’s story
• Limited and scattered use
• Powerful brand-building tool
Copyright © 2015 Pearson Education Ltd.
12 – 26
Major Public Relations Tools
News
Special events
Written
materials
Audiovisual
materials
Corporate
identity
materials
Public service
activities
Copyright © 2015 Pearson Education Ltd.
12 – 27
Learning Objectives
• Define the five promotion mix tools for
communicating customer value.
• Discuss the changing communications
landscape and the need for integrated
marketing communications.
Copyright © 2015 Pearson Education Ltd.
12 – 28
Learning Objectives
• Describe and discuss the major decisions
involved in developing an advertising
program.
• Explain how companies use public relations
to communicate with their publics.
Copyright © 2015 Pearson Education Ltd.
12 – 29
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 © 2015 Pearson Education, Inc.
Activity 2 – Push and Pull strategy
Q1: From you understanding in the class (Chapter 6) give a brief definition of
pull strategy and push strategy with Examples?
Q2: What is the best strategy?
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