1、Marketing:An Introduction Thirteenth Edition Chapter 12 Engaging Consumers and Communicating Customer value:Advertising and Public Relations Learning Objectives(1 of 4)12-1.Define the five promotion mix tools for communicating customer value.12-2.Discuss the changing communications landscape and the
2、 need for integrated marketing communications.Learning Objectives(2 of 4)12-3.Describe and discuss the major decisions involved in developing an advertising program.12-4.Explain how companies use public relations to communicate with their publics.First Stop:GEICO-From Bit Player to Behemoth through
3、Good AdvertisingGEICO has muscled its way to the number-two position in its ultra-competitive industry.Learning Objective 12-1Define the five promotion mix tools for communicating customer value.Promotion Mix A promotion mix,or marketing communications mix,is a specific blend of promotion tools:Adve
4、rtising Sales promotion Personal selling Public relations(PR)Direct and digital marketingLearning Objective 12-1 SummaryA companys total promotion mix consists of tools that the company uses to engage customers,persuasively communicate customer value,and build customer relationships.Learning Objecti
5、ve 12-2Discuss the changing communications landscape and the need for integrated marketing communications.New Marketing Communications Model(1 of 3)Factors changing the face of todays marketing communications:Changing consumers Changing marketing strategies Advancements in digital technologyNew Mark
6、eting Communications Model(2 of 3)Methods successful“Clean happy”campaign began as an online-only effort.New Marketing Communications Model(3 of 3)Marketers reach smaller consumer segments in interactive and engaging ways.Mix of traditional mass media and a wide array of online,mobile,and social med
7、ia Content marketing managers create,inspire and share brand messages and conversations.Figure 12.1 Integrated Marketing CommunicationsNature of the Promotion Tools(1 of 2)Promotion toolDescriptionAdvertising Reaches masses of buyers at a low cost per exposure Builds a long-term image for a product
8、Can trigger quick sales Has a public nature and is viewed as legitimate Very expressive Impersonal and lacks the direct persuasiveness of salespeoplePersonal selling Personal interaction between two or more people Allows all kinds of customer relationships to spring up Buyer feels a greater need to
9、listen and respond Most expensive promotion toolNature of the Promotion Tools(2 of 2)Promotion toolDescriptionSales promotion Wide assortment of tools with unique qualities Attracts attention and offers incentives to purchase Used to dramatize product offers and boost sales Invites and rewards quick
10、 response but has short-lived effectsPublic relations Very believable to readers Can dramatize a company or product Reaches many prospects Effective and economical when well thought outDirect and digital marketing More targeted and interactive Immediate and personalizedFigure 12.2-Push versus Pull P
11、romotion StrategyLearning Objective 12-2 Summary New marketing communications model More targeted,social,and engaging Integrated marketing communications Integrates and coordinates the companys many communications channels Delivers a clear,consistent,and compelling message about the organization and
12、 its brandsLearning Objective 12-3Describe and discuss the major decisions involved in developing an advertising program.Figure 12.3 Major Advertising DecisionsTable 12.1-Possible Advertising Objectives(1 of 2)Informative AdvertisingblankCommunicating customer valueSuggesting new uses for a product
13、Building a brand and company imageInforming the market of a price changeTelling the market about a new productDescribing available services and supportExplaining how a product worksCorrecting false impressions Persuasive AdvertisingblankBuilding brand preference Persuading customers to purchase now
14、Encouraging switching to a brand Creating customer engagement Changing customer perceptions of product value Building brand community Table 12.1-Possible Advertising Objectives(2 of 2)Reminder AdvertisingblankMaintaining customer relationshipsReminding consumers where to buy the productReminding con
15、sumers that the product may be needed in the near futureKeeping the brand in a customers mind during off-seasonsMethods of Setting the Advertising Budget Affordable Method Percentage-of-Sales Method Competitive-Parity Method Objective-and-Task MethodSetting the Advertising BudgetCoca-Cola spends hun
16、dreds of millions of dollars annually,but is that“half enough or twice too much”?Advertising Strategy Accomplishes the companys advertising objectives Major advertising strategy elements:Creating advertising messages Selecting advertising mediaCreating the Advertising Message and Brand Content Break
17、ing through the clutter Merging advertising and entertainment Message and content strategy Message execution Consumer-generated contentSelecting Advertising Media Advertising media:Vehicles through which advertising messages are delivered to their intended audiences Steps in advertising media select
18、ion:Determining reach,frequency,impact and engagement Choosing among major media types Selecting specific media vehicles Choosing media timingProfiles of Major Media Types(1 of 3)MediumAdvantagesLimitationsTelevision Good mass-marketing coverage Low cost per exposure Combines sight,sound,and motion
19、Appealing to the senses High absolute costs High clutter Fleeting exposure Less audience selectivityDigital,mobile,and social media High selectivity Low cost Immediacy Engagement capabilities Potentially low impact High audience control of content and exposureProfiles of Major Media Types(2 of 3)Med
20、iumAdvantagesLimitationsNewspapers Flexibility Timeliness Good local market coverage Broad acceptability and high believability Short life Poor reproduction quality Small pass-along audienceDirect mail High audience selectivity Flexibility No ad competition within the same medium Allows personalizat
21、ion Relatively high cost per exposure Junk mail imageProfiles of Major Media Types(3 of 3)MediumAdvantagesLimitationsMagazines 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
22、No guarantee of positionRadio Good local acceptance High geographic and demographic selectivity Low cost Audio only Fleeting exposure Low attention Fragmented audiencesOutdoor Flexibility High repeat exposure Low cost Low message competition Good positional selectivity Little audience selectivity Cr
23、eative limitationsEvaluating 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 effectsOrganiz
24、ing 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 programsInternational Advertising Decisions Degr
25、ee of adaptation Standardization benefits Lower advertising costs Greater global advertising coordination More consistent worldwide image Standardization drawbacks Ignores the fact that country markets differ in their cultures,demographics,and economic conditionsProblems Faced by Global Advertisers
26、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 RegulationsLearning Objective 12-3 Summary Advertising is the use of paid,owned,earned,and shared
27、media by a seller to inform,persuade,and remind consumers about its products or organization.Advertising decision making involves decisions about objectives,budget,message,media,and evaluation of results.Return on advertising investmentLearning Objective 12-4Explain how companies use public relation
28、s to communicate with their publics.Functions of Public Relations(PR)Departments Press relations or press agency Product publicity Public affairs Lobbying Investor relations DevelopmentPublic Relations(1 of 2)Promotes products,people,ideas,organizations,and nations Builds good relations with consume
29、rs,investors,the media,and communities Rebuilds interest in commodities for trade associationsPublic Relations(2 of 2)MilkPEPs“Built With Chocolate Milk”public relations campaign is repositioning chocolate milk.Role and Impact of PR Strong impact on public awareness at a lower cost than advertising
30、Power to engage consumers and make them part of the brands story Limited and scattered use Powerful brand-building toolMajor Public Relations Tools News Special events Written materials Audiovisual materials Corporate identity materials Public service activitiesLearning Objective 12-4 Summary Public
31、 relations functions Press agency,product publicity,public affairs,lobbying,investor relations,and development Public relations tools News,special events,written materials,audiovisual materials,corporate identity materials,and public service activities.Companys Web site and online social media can b
32、e good PR vehiclesLearning Objectives(3 of 4)12-1.Define the five promotion mix tools for communicating customer value.12-2.Discuss the changing communications landscape and the need for integrated marketing communications.Learning Objectives(4 of 4)12-3.Describe and discuss the major decisions involved in developing an advertising program.12-4.Explain how companies use public relations to communicate with their publics.
