basic12_ppt.ppt 210KB Sep 05 2010 10:45:28 PM

Chapter Twelve

Communicating Customer Value: Advertising, Sales Promotion, and

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.

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

CP + B: An Unusual Success Story

CP + B: An Unusual Success Story

Case Study

Case Study

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

The Marketing Communications

(Promotion) Mix

 _Advertising

 _{Sales Promotion}  _{Public Relations}  _{Personal Selling}  _{Direct Marketing}

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}

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.

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}

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;}

Sales Promotion

 _{Wide assortment of tools.}

 _{Attracts consumer attention.}

 _{Offers strong incentives to buy.}

 _{Invites and rewards quick consumer}

response.

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}

Direct Marketing

 _{Many forms that share four primary}

characteristics:

– Nonpublic – Immediate – Customized – Interactive

 _{Well suited to highly targeted}

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.

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

Major Advertising Decisions

 _{Setting advertising objectives}  _{Setting the advertising budget}  _{Developing advertising strategy}  _{Evaluating advertising campaigns}

Setting Advertising Objectives

 _{Advertising Objective:}

– specific communication task to be accomplished with a specific target

audience during a specific period of time.

 _{Classified by Purpose:}

– Inform

– Persuade – Compare

Setting the Advertising Budget

 _{Affordable method}

 _{Percentage-of-sales method}  _{Competitive-parity method}  _{Objective-and-task method}

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.

The Message Strategy

 _{Identify customer benefits}

 _{Develop compelling creative concept—}

the “Big Idea”

 _{Advertising appeals should be:}

Message Execution

 _Technical

Expertise

 _Scientific

Evidence

 _{Testimonial or}

Endorsement

 _{Slice of Life}  _Lifestyle

 _Fantasy

 _{Mood or Image}  _Musical

 _Personality

Message Execution

 _{Choose a tone}

 _{Use memorable, attention-getting}

words

 _{Choose correct format elements}

– _Illustration – _Headline – _Copy

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.

Choosing Media Type

 _{Factors to consider when selecting}

media type:

– Medium’s impact

– Message effectiveness – Cost

Choosing Media Vehicles

 _{Media vehicles:}

– Specific media within each general media type

 _{Factors to consider:}

– Cost

– Audience quality – _{Audience attention} – _{Editorial quality}

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

Evaluating Advertising

 _{Measure the communication effects of}

an ad—“Copy Testing”

 _{Measure the sales effects of an ad}

Other Advertising

Considerations

 _{Organization of Ad Function}

– Small companies – Large companies – Advertising agency

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}

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

Consumer Promotion

 _Objectives:

– Increase short-term sales

– Help build long-term market share

 _{Many tools exist which can help to}

Consumer Sales Promotion

Tools

 _{Patronage rewards}  _{Point-of-purchase} displays  _{Demonstrations}  _Contests  _Sweepstakes  _Games  _Samples  _Coupons

 _{Cash refunds}  _{Price packs}  _Premiums  _Advertising

Trade Promotion

 _Objectives:

– 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.

Business Promotion

 _Objectives:

– Generate business leads. – Stimulate purchases.

– _{Reward customers.} – _{Motivate salespeople.}

 _Tools:

– _{Conventions, trade shows, sales contests,} and many of the same tools used for

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}

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

Public Relations Functions

 _{Press relations or press agency}  _{Product publicity}

 _{Public affairs}  _Lobbying

 _{Investor relations}  _Development

Public Relations Role & Impact

 _{May strongly impact public awareness}

at a lower cost than advertising.

 _{Results can be spectacular.}

 _{Beginning to play an increasingly}

Public Relations Tools

 _Audiovisual

materials

 _{Corporate identity}

materials

 _{Public service}

activities

 _{Company Web}  _News

 _Speeches

 _{Special events}  _{Buzz marketing}

 _{Mobile marketing}  _{Written materials}

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.

Copyright 2007, Prentice Ha ll, Inc.

12-33

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 Ha ll, Inc.

12-34

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

Copyright 2007, Prentice Ha ll, Inc.

12-35

Public Relations Functions

 _{Press relations or press agency}  _{Product publicity}

 _{Public affairs}  _Lobbying

 _{Investor relations}  _Development

Copyright 2007, Prentice Ha ll, Inc.

12-36

Public Relations Role & Impact

 _{May strongly impact public awareness}

at a lower cost than advertising.

 _{Results can be spectacular.}

 _{Beginning to play an increasingly}

Copyright 2007, Prentice Ha ll, Inc.

12-37

Public Relations Tools

 _Audiovisual

materials

 _{Corporate identity}

materials

 _{Public service}

activities

 _{Company Web}

site

 _News

 _Speeches

 _{Special events}  _{Buzz marketing}

 _{Mobile marketing}  _{Written materials}

Copyright 2007, Prentice Hall, Inc. 12-38

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 communicate with their publics.