Engaging Consumers and Communicating Customer Value: Advertising and

Public Relations
Chapter 12
Page 399

LO1: Define the five promotion mix tools for communicating customer value.
LO2: Discuss the changing communications landscape and the need for integrated marketing
communications.
LO3: Describe and discuss the major decisions involved in developing an advertising program.
LO4: Explain how companies use public relations to communicate with their publics.

The Promotion Mix:

LO1: Define the five promotion mix tools for communicating customer value.
- Promotion Mix (Marketing Communications Mix):
- The specific blend of promotion tools that the company uses to persuasively
communicate customer value and build customer relationships.
- Advertising:
- Any paid form of nonpersonal presentation and promotion of ideas,
goods, or services by an identified sponsor.
- broadcast, print, online, mobile, outdoor, and other forms.
- Sales Promotion:
- Short-term incentives to encourage the purchase or sale of a product or a
service.
- discounts, coupons, displays, demonstrations, and events.
- Personal Selling:
- Personal presentation by the firm’s sales force for the purpose of
engaging customers, making sales, and building customer relationships.
- sales presentations, trade shows, and incentive programs.
- Public Relations (PR):
- Building good relations with the company’s various publics by obtaining
favorable publicity, bui;ding up a good corporate image, and handling or
heading off unfavorable rumors, stories, and events.
- press releases, sponsorships, events, and webpages.
- Direct and Digital Marketing:
- Engaging directly with carefully targeted individual consumers and
customer communities to both obtain an immediate response and build
lasting customer relationships.
- direct mail, email, catalogues, online and social media, mobile marketing,
and more.
 Integrated Marketing Communications:
LO2: Discuss the changing communications landscape and the need for integrated marketing
communications.
The New Marketing Communications Model:
- Content Marketing:
- Creating,inspiring, and sharing brand messages and conversations with and
among consumers across a fluid mix of paid, owned, earned, and shared
channels.
1. Consumers are changing
2. Marketing strategies are changing
3. Digitaltechnology are causing remarkable changes
The Need for Integrated Marketing Communications:
- Integrated Marketing Communications (IMC):
- Carefully integrated and coordinating the company’s many communications
channels to deliver a clear, consistent, and compelling message about the
organization and its products.
Shaping the Overall Promotion Mix:
The Nature of Each Promotion Tool:
- Each promotion tools has unique characteristics and costs. Marketers must understand
these characteristics in shaping the promotion mix.
1. Advertising:
- Because of advertising’s public nature, consumers tend to view advertised
products as more legitimate.
- On the one hand, advertising can be used to build up a long-term image for a
product (such as Coca-Cola ads). On the other hand, advertising can trigger
quick sales (as when Canadian Tire advertises weekend specials).
- Disadvantage: mass-media advertising is impersonal and lacks the direct
persuasiveness of company salespeople.
2. Personal Selling:
- the buyer usually feels a greater need to listen and respond, even if the response
is a polite “No, thank you.”
- Firms spend up to three times as much on personal selling as they do on
advertising.
3. Sales Promotion:
- advertising says, “Buy our product,” sales promotion says, “Buy it now.”
- Sales promotion effects can be short lived, however, and often are not as
effective as advertising or personal selling in building long-run brand preference
and customer relationships.
4. Public Relations:
- the message gets to buyers as “news and events” rather than as a sales-directed
communication.
5. Direct and Digital Marketing:
 - direct marketing is interactive: It allows a dialogue between the marketing team
and the consumer, and messages can be altered depending on the consumer’s
response.
Promotion Mix Strategies:
- Push Strategy:
- A promotion strategy that calls for using the sales force and trade promotion to
push the product through channels. The producer promotes the product to
channel memes who in turn prompt it to final consumers.
- Pull Strategy:
- A promotion strategy that calls for spending a lot on consumer advertising and
promotion to induce final consumers to buy the product, cheating a demand
vacuum that “pulls' ' the product through the channel.

Advertising and Major Advertising Decisions:

LO3: Describe and discuss the major decisions involved in developing an advertising program.
- Marketing management must make four important decisions when developing an
advertising program
1. Setting Advertising Objectives:
- Advertising Objectives:
- A specific communication task to be accomplished with a specific target
audience during a specific period of time.
- The overall advertising objective is to help engage customers and build customer
relationships by communicating customer value. Here, we discuss specific
advertising objectives.
- Advertising objectives can be classified by their primary purpose—to
- Inform:
- Communicating customer value
- Building a brand and compay image
- Telling the market about a new product
- Explaining how a product works
- Persuade:
- Building brand preference
- Encouraging switching to a brand
- Changing customer perceptions of product value
- Remind:
- Maintaining customer relationships
- Reminding consumers that the product may be needed in the near future
2. Setting the Advertising Budget:
- Advertising Budget:
- The dollars and other resources allocated to a product or a company
advertising program.
- Four common methods used to set the total budget for advertising:
1. Affordable Method:
- Affordable Method:
- Setting the promotion budget at the level management thinks the
company can afford.
- comparative advertising (or attack advertising), in which a company
directly or indirectly compares its brand with one or more other brands.
2. Percentage-of-Sales Method:
- Percentage-of-Sales-Method:
- Setting the promotion budget at a certain percentage of current or foIt
wrongly views sales as the cause of promotion rather than as the
result.recasted sales or as a percentage of the unit sales prices.
- It wrongly views sales as the cause of promotion rather than as the result.
3. Competitive-Parity Method:
- Competitive-Parity Method:
- Setting the promotion budget to match competitors’ outlays.
- There are no grounds for believing that the competition has a better idea
of what a company should be spending on promotion than does the
company itself
 4. Objective-and-Task Method:
- Objective-and-Task Method:
- Developing the promotion budget by (1) defining specific promotion
objectives, (2) determining the tasks needed to achieve these objectives,
and (3) estimating the costs of performing these tasks. The sum of these
costs is the proposed promotion budget.
3. Developing Advertising Strategy:
- Advertising Strategy:
- The strategy by which the company accomplishes its advertising
objectives. It consists of two major elements: creating advertising
messages and selecting advertising media.
Creating the Advertising Message and Brand Content:
Breaking Through the Clutter:
- Simply interrupting or disrupting consumers no longer works. Unless ads
provide content that is engaging, useful, or entertaining, many consumers
will simply ignore or skip them.
Merging Advertising and Entertainment:
- Madison & Vine:
- A term that has come to represent the merging of advertising and
entertainment in an effort to break through the clutter and create
new avenues for reaching customers with more engaging
messages.
- The merging of advertising and entertainment takes one of two forms:
1. Advertianment:
- The aim of advertainment is to make ads and brand
content themselves so entertaining or so useful that people
want to watch them.
- Suerbowl ads
2. Brand integrations:
- involve making the brand an inseparable part of some
other form of entertainment or content. The most common
form of brand integration is product placements
- Product placements
- Native Advertising:
- Advertising on other brand-produced online content that looks in
form and function like the other natural content surrounding it on a
web or social media platform.
- Examples include Twitter’s promoted tweets, Facebook’s promoted
stories, BuzzFeed’s sponsored posts, or Snapchat’s “brand story” ads,
branded posts that appear in the app’s “Stories” feed.
Message and Content Strategy:
- Creative Concept:
- The compelling “big idea” that will bring an advertising message
strategy to life in a distinctive and memorable way.
- Advertising Appeals should have three characteristics:
1. Should be meaningful
2. Must be believable
3. Should be distinctive
Message Execution:
- Execution Style:
- The approach, style, tone, words, and format used for executing
an advertising message.
1. Slice of Life:
- This style shows one or more “typical” people using the product in
a normal setting.
- Ikea shows people living in their showrooms
2. Lifestyle:
- This style shows how a product fits in with a particular lifestyle.
- Yoga pants
3. Fantasy:
- an ad for Nestlé Pure Life water shows a young girl diving into a
water-filled fantasy land where children blow bubbles high on a
gondola
4. Mood or Image:
- This style builds a mood or image around the product or service,
such as beauty, love, intrigue, serenity, or pride.
- “Hold onto the ones you love,” the ad urges. “Reinvent memories.”
5. Musical:
- This style shows characters singing about the product.
- Jennifer Hudson surprises the Morehouse College Glee Club.
6. Personality Symbol:
- This style creates a character that represents the product.
- Mr. Clean, Geico Gecko
7. Technical Expertise:
- This style shows the company’s expertise in making the product.
8. Scientific Evidence:
- This style presents survey or scientific evidence that the brand is
better or better liked than one or more other brands.
- Crest toothpaste
9. Testimonial Evidence or Endorsement:
- This style features a highly believable or likable source endorsing
the product.
- Whole Foods features a variety of real customers in its Values
Matter marketing campaign.
 Consumer-Generated Content:
- If done well, however, consumer-generated content efforts can produce
new creative ideas and fresh perspectives on the brand from consumers
who actually experience it.
Selecting Advertising Media:
- Advertising Media:
- The vehicles through which advertising messages are delivered to
their intended audiences.
- Major steps in advertising media selection are:
1. Determining Reach, Frequency, Impact, and Engagement:
- Reach:
- A measure of the percentage of people in the target market
who are exposed to an ad campaign during a given period
of time
- Frequency:
- A measure of how many times the average person in the
target market is exposed to a message.
- Impact:
- Engagement:
2. Choosing Among Major Media Types:
- Television
- Digital, mobile, and social media
- Newspapers
- Direct mail
- Magazines
- Radio
- Outdoor
3. Selecting Specific Media Vehicles:
- For example, television vehicles include Modern Family and CBC
News The National. Magazine vehicles include People, Better
Homes and Gardens, and Macleans. Online and mobile vehicles
include Twitter, Facebook, Instagram, and YouTube.
4. Deciding on Media Timing:
- The firm can vary its advertising to follow the seasonal pattern,
oppose the seasonal pattern, or be the same all year.
4. Evaluating Advertising Effectiveness and the Return on Advertising Investment:
- Return on Advertising Investment:
- The net return on advertising investment divided by the cost of the
advertising investment.
- Advertisers should regularly evaluate two types of advertising results:
1. Measuring the communication effects of an ad or ad campaign
2. Sales and profit effectsof advertising are harder to measure.
Other Advertising Considerations:
1. Organizing for Advertising:
- Advertising Agency:
- A marketing services firm that assists companies in planning, preparing,
implementing, and evaluating all or portions of their advertising programs.
- even companies with strong advertising departments of their own use advertising
agencies.
2. International Advertising Decisions:
- The most basic issue concerns the degree to which global advertising should be
adapted to the unique characteristics of various country markets.
- In recent years, the increased popularity of online marketing and social media
sharing has boosted the need for advertising standardization for global brands.

Public Relations:
LO4: Explain how companies use public relations to communicate with their publics.
- PR may include any or all of the following functions:
1. Press Relations or Press Agency:
2. Product and Brand Publicity:
3. Public Affairs:
4. Lobbying:
5. Investor Relations:
6. Development:
The Role and Impact of PR:
- The PR department is often located at corporate headquarters or handled by a
third-party agency. Its staff is so busy dealing with various publics—stockholders,
employees, legislators, and the press—that PR programs to support product marketing
objectives may be ignored.
Major Public Relations Tools:
- One of the major tools is the news.
- Special events, ranging from news conferences and speeches, brand tours, and
sponsorships to multimedia presentations or edcational programs designed to reach and
interest target ublics.
- Written material to reach and influence their target markets.
Quiz
1. Which of the following media is most suitable for advertising a product that needs to be
demonstrated?
- Television
2. Which of the following is an example of branded entertainment?
- A company placing its product in a movie scene
3. Pepsi Cola has long used this form of ________ advertising in an attempt to take market
share from their primary rival, Coca Cola.
- Comparative
4. A pharmaceutical manufacturer offers monetary incentives to its sales representatives to
promote a new drug to the medical professionals in their respective geographic territories.
This is an example of a ________ strategy.
- Pull
5. Which of the following is most likely a difference between advertising and sales promotion?
- Advertising can be used to build up a long-term image for a product while sales
promotion effects can be short lived.
6. ColaBlue, a soft drink manufacturer, is sued by an environmental group for not meeting
certain safety standards in its waste disposal. ColaBlue remedies the problem by adding
higher-grade filters and purifiers. Which of the following actions by ColaBlue would constitute
a public-relations effort to address the effects of the lawsuit and the consequent damage to
its brand image?
- Holding a press conference to explain the remedial steps that ColaBlue has taken.
7. The early manufacturers of electric vehicles (EVs) first had to invest in ________ advertising
to make the market aware of the economic and performance benefits.
- Informative
8. The ________ method of setting an advertising budget typically overlooks how promotion
affects sales.
- Affordable
9. Studio 19 is a dance studio geared to adults who want to learn ballroom and Latin dance.
When individuals call the studio, they're encouraged to access the website to receive a $25
e-coupon entitling them to a free half hour of dance instruction. Once they become patrons,
text messages are sent to share news about featured dance instructors and upcoming
special events. Which of the following promotion mix tools does Studio 19 employ to reach
target customers?
- Direct marketing
10. Which of the following is a disadvantage of advertising?
- It only provides one-way communication with customers.
11. Which of the following is an example of a firm utilizing public relations as a promotion tool?
- A firm providing interesting information about a product to the news media.
12. Which of the following is an effect of the advancement of technology on marketing?
- Consumers rely less on marketer-supplied information than in the past.
13. TechGreen is launching a line of miniature solar chargers for laptops, cellphones, and other
electronic devices. The chargers are compact and affordable, and the green energy
technology is a value-added benefit for both the company and consumers. Which of the
following would qualify as an advertisement for TechGreen's new solar chargers?
- A front-page notice to discus the various benefits, including environmental features.
14. The ________ style of advertising shows ordinary people clearly using a product in a normal
setting.
- Slice of life