Communicating

Customer Value:
Advertising and Public Relations

Chapter
12
Rest Stop: Previewing the Concepts
1. Define the five promotion mix tools for
communicating customer value.
2. Discuss the changing communications
landscape and the need for integrated
marketing communications.
3. Describe and discuss the major decisions
involved in developing an advertising
program.
4. Explain how companies use public
relations to communicate with their
publics.
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 Promotion Mix

Specific blend of promotion

tools that the company uses to
persuasively communicate
customer value and build
customer relationships.
Also referred to as “marketing
communications mix”.
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 Integrated Marketing
Communications
 Several factors are changing the face
of marketing communications:
– Consumers.
– Marketing strategies.
– Communication technology.
 These factors have shifted the
marketing communications model so
that firms are doing less broadcasting
and more narrowcasting.

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 Integrated Marketing
Communications (IMC)

Carefully integrating and

coordinating the company’s many
communication channels to
deliver a clear, consistent, and
compelling message about the
organization and its products.

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 Figure 12.1:
Integrated Marketing
Communications

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 Integrated Marketing
Communications
 A strong need for integrated
marketing communications exists.
– Conflicting messages from different
sources can create confusion or blur
brand perceptions.
 Marketers must understand each
promotion tool when shaping the
marketing communications mix.
– Each brand contact delivers a message.

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 Marketing in Action

Burger King’s integrated, multipronged Whopper

Freakout campaign employed a carefully
coordinated mix of TV, radio, rich media banner
ads, and a Freakout web site. Successful? You
bet! Sales grew by 29%!
http://www.youtube.com/watch?v=mMOPj6-4nDU
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Shaping the Overall Promotion Mix
 Nature of advertising:
– Can reach masses of geographically
dispersed buyers at a low cost per
exposure.
– Can repeat a message many times.
– Consumers view advertised products as
more legitimate.
– Is impersonal, one-way communication.
– Can be very costly for some media types.

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Shaping the Overall Promotion Mix
 Nature of personal selling:
– Involves personal interaction between two or
more people.
– Most effective tool at building preferences,
convictions, and actions.
– Allows relationship building and two-way
communication.
– Requires long-term commitment to sales force.
– Most expensive promotion tool.

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 Marketing in Action
With personal
selling, customers
feel a greater need
to listen and
respond. Two-way
communication is a
key strength of
selling compared to
other forms of
marketing
communications.
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Shaping the Overall Promotion Mix

 Nature of sales promotion:

– Includes a wide assortment of tools.
– Attracts consumer attention.
– Can be used to dramatize product offers.
– Offers strong incentives to buy.
– Invites and rewards quick consumer
response.
– Effects are short-lived.

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Shaping the Overall Promotion Mix

 Nature of 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
economical.

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Shaping the Overall Promotion Mix
 Nature of direct marketing:
– Many forms of direct marketing exist.
– Direct marketing forms share four primary
characteristics:
• Less public.
• Immediate.
• Customized.
• Interactive.
– Well suited to highly targeted marketing.

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 Figure 12.2:
Push vs. Pull Promotion Strategy

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 Advertising
Major Advertising Decisions

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 Major Advertising Decisions
 Advertising objective:
– A specific communication task to be
accomplished with a specific target
audience during a specific period of time.
 Overall advertising goal is to help
build customer relationships by
communicating customer value.

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 Major Advertising Decisions
 Advertising objectives
can be classified by
purpose:
– Informative
advertising.
– Persuasive advertising.
– Comparative
advertising (a special
type of persuasive
advertising).
– Reminder advertising.

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$
Major Advertising Decisions
 Setting the
advertising budget:
– Affordable method.
– Percentage-of-sales
method.
– Competitive-parity
method.
– Objective-and-task
method.

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 Marketing in Action

Audi gained a
competitive
advantage by
spending heavily
on advertising
and promotion at
a time when
rivals were
retrenching.
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 Major Advertising Decisions
 Developing advertising
strategy:
– Creating advertising
messages.
• Message strategy and
message execution
must break through the
clutter.
• Advertising is being
merged with
entertainment.

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 “Madison & Vine”
A term that has come to represent
the merging of advertising
entertainment in an effort to break
through the clutter and create new
avenues for reaching consumers
with more engaging messages.

Visit the Adverblog’s archive on

Advertainment for current examples.
30 Rock: http://www.youtube.com/watch?v=d36wUmJGzvA

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 Major Advertising Decisions
 Planning the message strategy:
– Identify customer benefits that can be
used as advertising appeals.
– Develop compelling creative concept—
the “big idea”.
– Choose an ad advertising appeal that is:
• Meaningful.
• Believable.
• Distinctive.

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 Major Advertising Decisions

Message Execution Styles:

 Slice of Life  Technical
 Lifestyle expertise
 Fantasy  Scientific
evidence
 Mood or image
 Testimonial
 Musical
evidence or
 Personality endorsement
symbol
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 Major Advertising Decisions
 Message execution process:
– Choose the execution style.
– Choose a tone.
• Use memorable, attention-getting words.
– Choose format elements:
• Illustration.
• Headline.
• Copy.

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 Major Advertising Decisions
 Consumer-generated messages:
– Tapping consumers for message ideas or
actual ads can involve:
• Searching existing Web video sites.
• Holding contests or inviting consumers to submit
ad message ideas and videos.
– Benefits of consumer-generated messages:
• Collects new ideas and fresh brand perspectives
at relatively little expense.
• Boosts consumer involvement and gets
consumers talking and thinking about the brand.

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 Marketing in Action
The Doritos “Crash
the Super Bowl” ads
are among the top-
rated ads on USA
Today’s Super Bowl
Ad Meter.
Visit the “Crash” web
site to learn how you
can submit your ad
and to view the ads
created by the most
recent winners.
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 Major Advertising Decisions
 Developing advertising strategy:
– Selecting advertising media.
• Set reach, frequency, and impact goals.
• Choose among major media types.
• Select specific media vehicles.
• Decide on media timing.

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 Major Advertising Decisions
 Deciding on reach, frequency, impact:
– Reach: Percentage of people exposed to
ad campaign in a given time period.
– Frequency: Number of times a person is
exposed to advertisement.
– Media Impact: The qualitative value of a
message exposure through a given
medium.

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 Major Advertising Decisions
 Each media type has
specific advantages and
disadvantages.
 Choosing among media
types requires
consideration of the:
– Medium’s impact
– Message effectiveness
– Cost
 The media mix should be
regularly reexamined.

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 Major Advertising Decisions
 Media vehicles:
– Specific media within each general media type,
such as Newsweek.
 Factors to consider when choosing
vehicles:
– Cost.
– Audience quality.
– Audience engagement.
– Editorial quality.

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 Major Advertising Decisions
 Marketers must also decide on media
timing, or 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.

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 Evaluating Advertising and Return
on Advertising Investment
 Return on advertising investment:
– The net return on advertising investment
divided by the costs of the advertising
investment.
 Evaluating advertising involves:
– Measuring the communication effects of an ad
or campaign.
– Measuring the sales and profit effects of the
ad campaign.

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 Other Advertising Considerations

 International advertising issues:

– To what degree should global
advertising be adapted to various
countries?
• Greater need for standardization of
global brand advertising strategies.
• Specific advertising programs must
usually be adapted to local cultures and
other factors.

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 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 unfavorable
rumors, stories, and events.

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 Public Relations
 Public relations departments perform
the following functions:
– Press relations or press agency.
– Product publicity.
– Public affairs.
– Lobbying.
– Investor relations.
– Development.

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 Public Relations Role and
Impact
 Public relations:
– May strongly impact public awareness at
a lower cost than advertising.
– Can yield spectacular results.
– Is beginning to play an increasingly
important brand-building role.

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 Major Public Relations Tools

 News  Corporate identity

 Speeches materials
 Special events  Public service
 activities
Written
materials  Buzz marketing &
 Audiovisual social networking
materials  Company Web site

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 Rest Stop: Reviewing the Concepts
1. Define the five promotion mix tools for
communicating customer value.
2. Discuss the changing communications
landscape and the need for integrated
marketing communications.
3. Describe and discuss the major decisions
involved in developing an advertising
program.
4. Explain how companies use public
relations to communicate with their
publics.
Copyright 2011, Pearson Education Inc., Publishing as Prentice-Hall 12 - 39