1. Chapter Twelve
Communicating Customer Value: Advertising, Sales Promotion, and Public Relations

2. Explain how sales promotion campaigns are developed and implemented.
4/21/2017
Discuss the process and advantages of integrated marketing communications.
Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix.
Describe and discuss the major decisions involved in developing an advertising program.
Explain how sales promotion campaigns are developed and implemented.
Explain how companies use public relations to communicate with their publics.
Copyright 2007, Prentice Hall, Inc.
Copyright 2005 Brainy Betty, Inc.

3. CP + B: An Unusual Success Story
Case Study
CP + B: An Unusual Success Story
The Agency
Has recently won both multiple creative awards and several major advertising accounts.
Located in South Beach, FL, far removed from mainstay agencies on Madison Avenue in NY.
Agency philosophy: “Anything and everything is an ad.”
The Tactics
Heavy focus on guerilla tactics, unconventional uses of media, and holistic marketing strategies while TV is used only sparingly.
Street level research helps develop creative appeals.
Tries to start a consumer movement behind the brand, and campaigns go well beyond advertising.
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4. The Marketing Communications (Promotion) Mix
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
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5. New Communications Realities
Mass markets have fragmented, leading to a shift away from mass marketing.
Improvements in information technology are speeding movement toward segmented marketing.
These factors have shifted the marketing communications model.
Less broadcasting
More narrow casting
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6. Integrated Marketing Communications
Using IMC, the company carefully 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.
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7. Advertising Can reach masses of geographically dispersed buyers.
Can repeat a message many times.
Is impersonal, one-way communication.
Can be very costly for some media types.
Copyright 2007, Prentice Hall, Inc.

8. Personal Selling
Involves personal interaction between two or more people.
Most effective tool at building preferences, convictions and actions.
Allows relationship building.
Most expensive promotion tool; requires long-term commitment.
Copyright 2007, Prentice Hall, Inc.

9. Sales Promotion Wide assortment of tools. Attracts consumer attention.
Offers strong incentives to buy.
Invites and rewards quick consumer response.
Effects are short-lived.
Copyright 2007, Prentice Hall, Inc.

10. 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.
Copyright 2007, Prentice Hall, Inc.

11. Direct Marketing Many forms that share four primary characteristics:
Nonpublic
Immediate
Customized
Interactive
Well suited to highly targeted marketing.
Copyright 2007, Prentice Hall, Inc.

12. Promotion Mix Strategies
Push Strategy
Producer directs its marketing activities toward channel members to induce them to carry the product and promote it to the final consumers.
Pull Strategy
Producer directs its marketing activities toward final consumers to induce them to buy the product.
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13. Advertising Advertising has been used for centuries.
U.S. advertisers spend more than $264 billion each year; worldwide spending approaches $550 billion.
Advertising is used by:
Business firms
Nonprofit organizations
Professionals
Social agencies
Government
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14. Major Advertising Decisions
Setting advertising objectives
Setting the advertising budget
Developing advertising strategy
Evaluating advertising campaigns
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15. Setting Advertising Objectives
specific communication task to be accomplished with a specific target audience during a specific period of time.
Classified by Purpose:
Inform
Persuade
Compare
Remind
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16. Setting the Advertising Budget
Affordable method
Percentage-of-sales method
Competitive-parity method
Objective-and-task method
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17. 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.
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18. The Message Strategy Identify customer benefits
Develop compelling creative concept—the “Big Idea”
Advertising appeals should be: meaningful, believable, and distinctive
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19. Message Execution Slice of Life Lifestyle Fantasy Mood or Image
Musical
Personality Symbol
Technical Expertise
Scientific Evidence
Testimonial or Endorsement
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20. Message Execution Choose a tone Use memorable, attention-getting words
Choose correct format elements
Illustration
Headline
Copy
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21. Setting Media Objectives
Reach
Percentage of people exposed to ad.
Frequency
Number of times a person is exposed to advertisement.
Media Impact
The qualitative value of a message exposure through a given medium.
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22. Choosing Media Type Factors to consider when selecting media type:
Medium’s impact
Message effectiveness
Cost
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23. Choosing Media Vehicles
Specific media within each general media type
Factors to consider:
Cost
Audience quality
Audience attention
Editorial quality
Copyright 2007, Prentice Hall, Inc.

24. Deciding on Media Timing
Must decide 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
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25. Evaluating Advertising
Measure the communication effects of an ad—“Copy Testing”
Measure the sales effects of an ad
Is the ad increasing sales?
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26. Other Advertising Considerations
Organization of Ad Function
Small companies
Large companies
Advertising agency
International Advertising Issues
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27. Sales Promotion
Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or service.
The idea behind sales promotion is to generate immediate sales.
Copyright 2007, Prentice Hall, Inc.

28. 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
Consumers have become more deal oriented
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29. Consumer Promotion Objectives:
Increase short-term sales
Help build long-term market share
Many tools exist which can help to achieve these objectives.
Copyright 2007, Prentice Hall, Inc.

30. Consumer Sales Promotion Tools
Samples
Coupons
Cash refunds
Price packs
Premiums
Advertising Specialties
Patronage rewards
Point-of-purchase displays
Demonstrations
Contests
Sweepstakes
Games
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31. Trade Promotion Objectives: Tools:
Persuade resellers to carry a brand.
Give a brand shelf space.
Promote brand in advertising.
Push brand to customers.
Tools:
Discounts, allowances, free goods, push money, specialty advertising items.
Copyright 2007, Prentice Hall, Inc.

32. Business Promotion Objectives: Tools: Generate business leads.
Stimulate purchases.
Reward customers.
Motivate salespeople.
Tools:
Conventions, trade shows, sales contests, and many of the same tools used for consumer or trade promotions.
Copyright 2007, Prentice Hall, Inc.

33. Developing the Sales Promotion Program
Decide on the size of the incentive
Set conditions for participation
Decide how to promote and distribute the promotion program
Decide the length of the program
Evaluate the program
Copyright 2007, Prentice Hall, Inc.

34. 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.
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35. Public Relations Functions
Press relations or press agency
Product publicity
Public affairs
Lobbying
Investor relations
Development
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36. Public Relations Role & Impact
May strongly impact public awareness at a lower cost than advertising.
Results can be spectacular.
Beginning to play an increasingly important brand-building role.
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37. Public Relations Tools
News
Speeches
Special events
Buzz marketing
Mobile marketing
Written materials
Audiovisual materials
Corporate identity materials
Public service activities
Company Web site
Copyright 2007, Prentice Hall, Inc.

38. Explain how sales promotion campaigns are developed and implemented.
4/21/2017
Discuss the process and advantages of integrated marketing communications.
Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix.
Describe and discuss the major decisions involved in developing an advertising program.
Explain how sales promotion campaigns are developed and implemented.
Explain how companies use public relations to communicate with their publics.
Copyright 2007, Prentice Hall, Inc.
Copyright 2005 Brainy Betty, Inc.