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Marketing:AnIntroductionFifteenthEditionChapter12EngagingConsumersandCommunicatingCustomerValue:AdvertisingandPublicRelationsCopyright©2023,2020,2017PearsonEducation,Inc.AllRightsReservedObjectivesOutline(1of2)12.1Definethefourpromotionmixtoolsforcommunicatingcustomervalue.12.2Discussthechangingcommunicationslandscapeandtheneedforintegratedmarketingcommunications.ObjectivesOutline(2of2)12.3Describeanddiscussthemajordecisionsinvolvedindevelopinganadvertisingprogram.12.4Explainhowcompaniesusepublicrelationstocommunicatewiththeirpublics.FirstStop:”BurgerKing:AnythingbutTraditionalIntegratedMarketingCommunicationsBurgerKing’softenwackycampaignsmightstrikesomeobserversasimpetuousorevenreckless.Buttheyunitearoundthelong-heldpositioningthatBurgerKingis“HomeoftheWhopper,”theiconic“flame-grilled,100%beef”creationthatkeepsloyalcustomerscomingback.ObjectiveOutline12.1Definethefourpromotionmixtoolsforcommunicatingcustomervalue.PromotionMixApromotionmix,ormarketingcommunicationsmix,isaspecificblendofpromotiontools:AdvertisingSalespromotionPersonalsellingPublicrelations(PR)ObjectiveOutline12.1SummaryAcompany’stotalpromotionmixconsistsoftoolsthatthecompanyusestoengagecustomers,persuasivelycommunicatecustomervalue,andbuildcustomerrelationships.ObjectiveOutline12.2Discussthechangingcommunicationslandscapeandtheneedforintegratedmarketingcommunications.NewMarketingCommunicationsModel(1of3)Factorschangingthefaceoftoday’smarketingcommunications:ChangingconsumersChangingmarketingstrategiesAdvancementsindigitaltechnologyNewMarketingCommunicationsModel(2of3)Marketersreachsmallerconsumersegmentsininteractiveandengagingways.Mixoftraditionalmassmediaandawidearrayofonline,mobile,andsocialmediaContentmarketingmanagerscreate,inspireandsharebrandmessagesandconversations.NewMarketingCommunicationsModel(3of3)Contentmarketing:Intuit’scontent-rich,skillfullyintegratedGiantStorycampaignproducedstrikingresultsacrossPOESmedia,significantlyliftingbrandawarenessandfavorability.Figure12.1IntegratedMarketingCommunicationsNatureofthePromotionTools(1of2)PromotiontoolDescriptionAdvertisingReachesmassesofbuyersatalowcostperexposureBuildsalong-termimageforaproductCantriggerquicksalesHasapublicnatureandisviewedaslegitimateVeryexpressiveImpersonalandlacksthedirectpersuasivenessofsalespeoplePersonalsellingPersonalinteractionbetweentwoormorepeopleAllowsallkindsofcustomerrelationshipstospringupBuyerfeelsagreaterneedtolistenandrespondMostexpensivepromotiontoolNatureofthePromotionTools(2of2)PromotiontoolDescriptionSalespromotionWideassortmentoftoolswithuniquequalitiesAttractsattentionandoffersincentivestopurchaseUsedtodramatizeproductoffersandboostsalesInvitesandrewardsquickresponsebuthasshort-livedeffectsPublicrelationsVerybelievabletoreadersCandramatizeacompanyorproductReachesmanyprospectsEffectiveandeconomicalwhenwellthoughtoutDirectand

digital

marketingMoretargetedandinteractiveImmediateandpersonalizedFigure12.2

PushversusPullPromotionStrategyObjectiveOutline12.2SummaryNewmarketingcommunicationsmodelMoretargeted,social,andengagingIntegratedmarketingcommunicationsIntegratesandcoordinatesthecompany’smanycommunicationschannelsDeliversaclear,consistent,andcompellingmessageabouttheorganizationanditsbrandsObjectiveOutline12.3Describeanddiscussthemajordecisionsinvolvedindevelopinganadvertisingprogram.Figure12.3

MajorAdvertisingDecisionsTable12.1PossibleAdvertisingObjectivesInformativeAdvertisingBlankCommunicatingcustomervalueSuggestingnewusesforaproductBuildingabrandandcompanyimageInformingthemarketofapricechangeTellingthemarketaboutanewproductDescribingavailableservicesandsupportExplaininghowaproductworksCorrectingfalseimpressionsPersuasiveAdvertisingBlankBuildingbrandpreferencePersuadingcustomerstopurchasenowEncouragingswitchingtoabrandCreatingongoingcustomerengagementChangingcustomerperceptionsofproductvalueBuildingbrandcommunityReminderAdvertisingBlankMaintainingcustomerrelationshipsRemindingconsumerswheretobuytheproductRemindingconsumersthattheproductmaybeneededinthenearfutureKeepingthebrandinacustomer’smindduringoff-seasonsMethodsofSettingtheAdvertisingBudgetAffordableMethodPercentage-of-SalesMethodCompetitive-ParityMethodObjective-and-TaskMethodSettingtheAdvertisingBudgetSettingthepromotionbudget:PepsiCospendsmorethan$1.7billionayearonpromotioncampaignsforitsmanybrands,suchasitscurrentPepsi“FortheLoveofIt”campaign.Butisthattoolittle,justright,ortoomuch?AdvertisingStrategyAccomplishesthecompany’sadvertisingobjectivesMajoradvertisingstrategyelements:CreatingadvertisingmessagesSelectingadvertisingmediaCreatingtheAdvertisingMessageandBrandContentBreakingthroughtheclutterMergingadvertisingandentertainmentMessageandcontentstrategyMessageexecutionConsumer-generatedcontentSelectingAdvertisingMediaAdvertisingmedia:VehiclesthroughwhichadvertisingmessagesaredeliveredtotheirintendedaudiencesStepsinadvertisingmediaselection:Determiningreach,frequency,impactandengagementChoosingamongmajormediatypesSelectingspecificmediavehiclesChoosingmediatimingTable12.2(1of2)ProfilesofMajorMediaTypesMediumAdvantagesLimitationsTelevisionGoodmass-marketingcoverage;lowcostperexposure;combinessight,sound,andmotion;appealingtothesensesHighabsolutecosts;highclutter;fleetingexposure;less

audienceselectivityDigital,mobile,andsocialmediaHighselectivity;lowcost;

immediacy;engagementcapabilitiesPotentiallylowimpact;highaudiencecontrolofcontentand

exposureNewspapersFlexibility;timeliness;goodlocalmarketcoverage;broad

acceptability;highbelievabilityShortlife;poorreproductionquality;smallpass-along

audience.DirectmailHighaudienceselectivity;flexibility;

noadcompetition

withinthesamemedium;

allowspersonalizationRelativelyhighcostperexposure;“junkmail”

image.Table12.2(2of2)ProfilesofMajorMediaTypesMediumAdvantagesLimitationsMagazinesHighgeographicanddemographicselectivity;credibility

andprestige;high-qualityreproduction;longlifeandgood

pass-alongreadershipLongadpurchaseleadtime;highcostRadioGoodlocalacceptance;highgeographicanddemographicselectivity;lowcost.Audioonly;fleetingexposure;lowattention(“thehalf-heard”

medium);fragmentedaudiencesOutdoorFlexibility;highrepeatexposure;lowcost;goodpositional

selectivityLittleaudienceselectivity;creativelimitationsEvaluatingAdvertisingEffectivenessandReturnonAdvertisingInvestmentReturnonadvertisinginvestment:

NetreturnonadvertisinginvestmentdividedbythecostsoftheadvertisinginvestmentAdvertisersshouldregularlyevaluateCommunicationeffectsSalesandprofiteffectsOrganizingforAdvertisingSmallfirmsmayusetheirsalesdepartmentstaffLargecompaniesmayhavetheirownadvertisingdepartmentsAdvertisingagency:Assistscompaniesinplanning,preparing,implementing,andevaluatingallorportionsoftheiradvertisingprogramsInternationalAdvertisingDecisionsDegreeofadaptationStandardizationbenefitsLoweradvertisingcostsGreaterglobaladvertisingcoordinationMoreconsistentworldwideimageStandardizationdrawbacksIgnoresthefactthatcountrymarketsdifferintheircultures,demographics,andeconomicconditionsProblemsFacedbyGlobalAdvertisersCountriesdifferinMediacostsandavailabilityAdvertisingpracticesDiversitybetweencountriesrequiresadvertiserstoadapttheircampaignstomeetlocalCulturesandcustomsMediacharacteristicsRegulationsObjectiveOutline12.3SummaryAdvertisingistheuseofpaid,owned,earned,andsharedmediabyasellertoinform,persuade,andremindconsumersaboutitsproductsororganizationAdvertisingdecisionmaking

involvesdecisionsaboutobjectives,budget,message,media,andevaluationofresultsReturnonadvertisinginvestmentObjectiveOutline12.4Explainhowcompaniesusepublicrelationstocommunicatewiththeirpublics.FunctionsofPublicRelations(PR)DepartmentsPressrelationsorpressagencyProductpublicityPublicaffairsLobbyingInvestorrelationsDevelopmentPublicRelations(1of2)Promotesproducts,people,ideas,organizations,andnationsBuildsgoodrelationswithconsumers,investors,themedia,andcommunitiesRebuildsinterestincommoditiesfortradeassociationsPublicRelations(2of2)Thepowerofpublicrelations:Asimplestatuewithabigmessage,backedbyanimaginativePRcampaign,hashadalargerandmorelastingimpactthaneventhemostmemorableSuperBowlad,probablyatalowercost.RoleandImpactofPRStrongimpactonpublicawarenessatalowercostthanadvertisingPowertoengageconsumersandmakethempartofthebrand’sstoryLimitedandscatteredusePowerfulbrand-buildingtoolMajorPublicRelationsToolsNewsSpecialeventsWrittenmaterialsVideosCorporateidentitymaterialsPublicserviceactivitiesObjectiveOutlin

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