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
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
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.
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
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
Advertising Objective:
– specific communication task to be accomplished with a specific target
audience during a specific period of time.
Classified by Purpose:
– Inform
Setting the Advertising Budget
Affordable 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
Personality
Message Execution
Choose a tone
Use memorable, attention-getting
words
Choose correct format elements
Setting Media Objectives
Reach
– Percentage of people exposed to ad.
Frequency
– Number of times a person is exposed to advertisement.
Media Impact
Choosing Media Type
Factors to consider when selecting
media type:
– Medium’s impact
Choosing Media Vehicles
Media vehicles:
– Specific media within each general media type
Factors to consider:
– Cost
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
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
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:
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
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
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
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.