Armstrong Mai12 Inppt 12-213675

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Learning Objectives

• Define the five promotion mix tools for


communicating customer value.
• Discuss the changing communications
landscape and the need for integrated
marketing communications.

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Copyright © 2015 Pearson Education Ltd.
Learning Objectives

• Describe and discuss the major decisions


involved in developing an advertising
program.
• Explain how companies use public relations
to communicate with their publics.

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First Stop: Tecso: Every Little Helps
• Came up with an enduring integrated marketing
communications campaign
• Key to the campaign’s success
• Consistency
• The “Every Little Helps” slogan, which
communicates the brand’s unique proposition
• Marketing information on social media are
coherently integrated with other traditional
media to echo the same message.
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Promotion Mix
• Specific blend of promotion tools
• Used by companies to:
• Engage consumers and persuasively communicate
customer value
• Build customer relationships
• Major promotion tools:
• Advertising and sales promotion
• Personal selling and public relations
• Direct and digital marketing
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New Marketing
Communications Model
• Factors changing marketing communications:
• Changing consumers
• Changing marketing strategies
• Advancements in communications technology

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New Marketing
Communications Model
• Marketers can reach smaller consumer
segments in interactive and engaging ways.
• Mix of both traditional mass media and a
wide array of online, mobile, and social media
• Brand content managers create and inspire
brand messages and conversations.
• Share with and among consumers across a fluid
mix of paid, owned, earned, and shared channels

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Figure 12.1 - Integrated
Marketing Communications

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Nature of the Promotion Tools
Promotion tool Description
Advertising • Reaches masses of buyers at a low cost per exposure
• Builds a long-term image for a product
• Can trigger quick sales
• Has a public nature and is viewed as legitimate
• Very expressive
• Impersonal and lacks the direct persuasiveness of
salespeople
Personal selling • Personal interaction between two or more people
• Allows all kinds of customer relationships to spring up
• Buyer feels a greater need to listen and respond
• Most expensive promotion tool

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Nature of the Promotion Tools
Promotion tool Description
Sales promotion • Wide assortment of tools with unique qualities
• Attracts consumer attention
• Offers strong incentives to purchase
• Used to dramatize product offers and boost sales
• Invites and rewards quick response
• Short-lived effects; less effective than advertising or
personal selling in building long-term relationships
Public relations • Very believable to readers
• Can dramatize a company or product
• Reaches many prospects
• Effective and economical when well thought out
Direct and digital • More targeted and interactive
marketing • Immediate and personalized

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Figure 12.2 - Push versus Pull
Promotion Strategy

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Major Advertising Decisions

Message
decisions

Objectives Budget Advertising


setting decisions evaluation

Media
decisions

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Table 12.2 - Possible
Advertising Objectives

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Methods of Setting the
Advertising Budget

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Advertising Strategy
• Accomplishes the company’s advertising
objectives
• Major advertising strategy elements:
• Creating advertising messages
• Selecting advertising media

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Creating the Advertising Message
• Breaking through the clutter
• Merging advertising and entertainment
• Planning a message strategy
• Executing the message
• Using consumer-generated content

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Selecting Advertising Media
• Advertising media: Vehicles through which
advertising messages are delivered to their
intended audiences
• Steps in advertising media selection:
• Determining reach, frequency, and impact
• Choosing among major media types
• Selecting specific media vehicles
• Choosing media timing

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Profiles of Major Media Types
Medium Advantages Limitations

Newspapers • Flexibility • Short life


• Timeliness • Poor reproduction
• Good local market coverage quality
• Broad acceptability and high • Small pass-along
believability audience
Direct mail • High audience selectivity • Relatively high cost per
• Flexibility exposure
• No ad competition within the • Junk mail image
same medium
• Allows personalization

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Profiles of Major Media Types
Medium Advantages Limitations
Magazines • High geographic and demographic • Long ad purchase lead time
selectivity • High cost
• Credibility and prestige • No guarantee of position
• High-quality reproduction
• Long life and good pass-along
readership
Radio • Good local acceptance • Audio only
• High geographic and demographic • Fleeting exposure
selectivity • Low attention
• Low cost • Fragmented audiences
Outdoor • Flexibility • Little audience selectivity
• High repeat exposure • Creative limitations
• Low cost
• Low message competition
• Good positional selectivity
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Evaluating Advertising Effectiveness &
Return on Advertising Investment
• Return on advertising investment: Net return
on advertising investment divided by the
costs of the advertising investment
• Advertisers should regularly evaluate:
• Communication effects
• Sales and profit effects

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Organizing for Advertising
• Small firms may use their sales department
staff.
• Large companies may have their own
advertising departments.
• Advertising agency: Assists companies in
planning, preparing, implementing, and
evaluating all or portions of their advertising
programs

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International Advertising Decisions:
Standardization
• Benefits
• Lower advertising costs
• Greater global advertising coordination
• More consistent worldwide image
• Drawback
• Ignores the fact that country markets differ in
cultures, demographics, and economic conditions

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Problems Faced by
Global Advertisers
• Countries differ in:
• Media costs and availability
• Advertising practices
• Diversity between countries requires advertisers
to adapt their campaigns to meet local:
• Cultures and customs
• Media characteristics
• Regulations

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Functions of Public Relations
(PR) Department

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Public Relations
• Promotes products, people,
ideas, organizations, and
nations
• Builds good relations with
consumers, investors, the
media, and communities
• Rebuilds interest in
commodities for trade
associations
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Role and Impact of PR
• Strong impact on public awareness at a lower
cost than advertising
• Power to engage consumers and make them
part of the brand’s story
• Limited and scattered use
• Powerful brand-building tool

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Major Public Relations Tools

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Learning Objectives

• Define the five promotion mix tools for


communicating customer value.
• Discuss the changing communications
landscape and the need for integrated
marketing communications.

12 - 28
Copyright © 2015 Pearson Education Ltd.
Learning Objectives

• Describe and discuss the major decisions


involved in developing an advertising
program.
• Explain how companies use public relations
to communicate with their publics.

12 - 29
Copyright © 2015 Pearson Education Ltd.
All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.

Copyright © 2015 Pearson Education, Inc.

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