Marketing: An Introduction

Fifteenth Edition

Chapter 12
Engaging Consumers and
Communicating Customer Value:
Advertising and Public Relations
Objectives Outline
12.1 Define the four promotion mix tools for communicating
customer value.
12.2 Discuss the changing communications landscape and
the need for integrated marketing communications.
12.3 Describe and discuss the major decisions involved in
developing an advertising program.
12.4 Explain how companies use public relations to
communicate with their publics.
First Stop: Jollibee: Communicating
Family Values

By focusing on familial
values, Jollibee’s campaigns
reemphasize their brand
philosophy.
Objective Outline 12.1
Define the four promotion mix tools for communicating
customer value.
Promotion Mix
• A promotion mix, or marketing communications mix, is
a specific blend of promotion tools:
– Advertising
– Sales promotion
– Personal selling
– Public relations (PR)
• The company uses to engage consumers,
persuasively communicate customer value, and build
customer relationships
Objective Outline 12.1 Summary
A company’s total promotion mix consists of tools that the
company uses to engage customers, persuasively
communicate customer value, and build customer
relationships.
Objective Outline 12.2
Discuss the changing communications landscape and the
need for integrated marketing communications.
New Marketing Communications
Model (1 of 3)
• Factors changing the face of today’s marketing
communications:
– Changing consumers
– Changing marketing strategies
– Advancements in digital technology
New Marketing Communications
Model (2 of 3)
• Marketers reach smaller consumer segments in interactive
and engaging ways.
• Mix of traditional mass media and a wide array of online,
mobile, and social media
• Content marketing managers create, inspire and share
brand messages and conversations.
• The Need for Integrated Marketing Communications
– Integrated marketing communications (IMC) involves
carefully integrating and coordinating the company’s
many communications channels to deliver a clear,
consistent, and compelling message about the
organization and its products.
Figure 12.1
Integrated Marketing Communications
Nature of the Promotion Tools (1 of 2)

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
Chapter 12
• 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
Chapter 12 up
• Buyer feels a greater need to listen and respond
• Most expensive promotion tool
Nature of the Promotion Tools (2 of 2)

Promotion tool Description

Sales promotion • Wide assortment of tools with unique qualities
• Attracts attention and offers incentives to purchase
Chapter 13 • Used to dramatize product offers and boost sales
• Invites and rewards quick response but has short-
lived effects

Public relations • Very believable to readers

• Can dramatize a company or product
Chapter 13 • Reaches many prospects
• Effective and economical when well thought out
Direct and • More targeted and interactive
digital • Immediate and personalized
marketing
Chapter 14
Promotion Mix Strategies
(see Figure 12.2)
• Marketers can choose from two basic promotion mix
strategies — push promotion or pull promotion.
– A push strategy involves “pushing” the product through
marketing channels to final consumers.
– A pull strategy involves the producer directing its
marketing activities toward final consumers to induce
them to buy the product.

• Most large companies use some combination of both

strategies.
Figure 12.2
Push versus Pull Promotion Strategy
Objective Outline 12.2 Summary
• New marketing communications model
– More targeted, social, and engaging
• Integrated marketing communications
– Integrates and coordinates the company’s many
communications channels
– Delivers a clear, consistent, and compelling message
about the organization and its brands
Objective Outline 12.3
Describe and discuss the major decisions involved in
developing an advertising program.
The four decisions to make when developing an advertising
program (see Figure 12.3)

Figure 12.3
Major Advertising Decisions
Table 12.1
Possible Advertising Objectives
Informative Advertising
Communicating customer value
Building a brand and company image
Telling the market about a new product
Explaining how a product works
Persuasive Advertising
Building brand preference
Encouraging switching to a brand
Changing customer perceptions of product
value
Reminder Advertising
Maintaining customer relationships
Reminding consumers that the product
may be needed in the near future
Blank
Suggesting new uses for a product
Informing the market of a price change
Describing available services and support
Correcting false impressions
Blank
Persuading customers to purchase now
Creating ongoing customer engagement
Building brand community
Blank
Reminding consumers where to buy the
product
Keeping the brand in a customer’s mind
during off-seasons
Methods of Setting the Advertising
Budget
• Affordable Method
• Percentage-of-Sales Method
• Competitive-Parity Method
• Objective-and-Task Method
Advertising Strategy
• Accomplishes the company’s advertising objectives
• Major advertising strategy elements:
– Creating advertising messages
– Selecting advertising media
Creating the Advertising Message
and Brand Content
• Breaking through the clutter
• Merging advertising and entertainment
• Message and content strategy
• Message execution
• Consumer-generated content
Selecting Advertising Media
• Advertising media: Vehicles through which advertising
messages are delivered to their intended audiences
• Steps in advertising media selection:
– Determining reach, frequency, impact and engagement
– Choosing among major media types
– Selecting specific media vehicles
– Choosing media timing
Table 12.2 (1 of 2)
Profiles of Major Media Types
Medium Advantages Limitations
Television Good mass-marketing coverage; low High absolute costs;
cost per exposure; combines sight, high clutter; fleeting
sound, and motion; appealing to the exposure; less audience
senses selectivity
Digital, High selectivity; low cost; immediacy; Potentially low impact;
mobile, and engagement capabilities high audience control of
social media content and exposure
Newspapers Flexibility; timeliness; good local Short life; poor
market coverage; broad acceptability; reproduction quality;
high believability small pass-along
audience.
Direct mail High audience selectivity; flexibility; Relatively high cost per
no ad competition within the same exposure; “junk mail”
medium; allows personalization image.
Table 12.2 (2 of 2)
Profiles of Major Media Types
Medium Advantages Limitations
Magazines High geographic and demographic Long ad purchase
selectivity; credibility and prestige; lead time; high cost
high-quality reproduction; long life
and good pass-along readership
Radio Good local acceptance; high Audio only; fleeting
geographic and demographic exposure; low
selectivity; low cost. attention (“the half-
heard” medium);
fragmented
audiences
Outdoor Flexibility; high repeat exposure; Little audience
low cost; good positional selectivity; creative
selectivity limitations
Evaluating Advertising Effectiveness
and 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
Other Advertising Considerations
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
Other Advertising Considerations
International Advertising Decisions
• Degree of adaptation
• Standardization benefits
– Lower advertising costs
– Greater global advertising coordination
– More consistent worldwide image
• Standardization drawbacks
– Ignores the fact that country markets differ in their
cultures, demographics, and economic conditions
Other Advertising Considerations
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
Objective Outline 12.3 Summary
• Advertising is the use of paid, owned, earned, and shared
media by a seller to inform, persuade, and remind
consumers about its products or organization
• Advertising decision making involves decisions about
objectives, budget, message, media, and evaluation of
results
• Return on advertising investment
Objective Outline 12.4
Explain how companies use public relations to communicate
with their publics.
Functions of Public Relations (P R)
Departments
• Press relations or press agency
• Product publicity
• Public affairs
• Lobbying
• Investor relations
• Development
Public Relations (1 of 2)
• Public relations is used to promote products, people,
ideas, organizations, and nations
• Builds good relations with consumers, investors, the
media, and communities
• Rebuilds interest in commodities for trade associations
Public Relations (2 of 2)
The power of public
relations: A simple statue
with a big message,
backed by an imaginative
PR campaign, has had a
larger and more lasting
impact than even the most
memorable Super Bowl
ad, probably at a lower
cost.
Role and Impact of P R
• 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
Major Public Relations Tools
• News
• Special events
• Written materials
• Videos
• Corporate identity materials
• Public service activities
Objective Outline 12.4 Summary
• Public relations functions
– Press agency, product publicity, public affairs, lobbying,
investor relations, and development
• Public relations tools
– News, special events, written materials, audiovisual
materials, corporate identity materials, and public
service activities
• Company’s Web site and online social media can be good
PR vehicles