Chapter Outline

• Define the five promotion mix tools for

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

• The specific blend of promotion tools

that the company uses to persuasively
communicate customer value and build
customer relationships

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 Five Major Promotion Tools
Paid form of nonpersonal presentation and promotion of ideas,
Advertising goods, or services by an identified sponsor

Short-term incentives to encourage the purchase or sale of a

Sales promotion product or service

Personal presentation by the firm’s sales force for the purpose of

Personal selling making sales and building customer relationships

Building good relations with the company’s various publics by

obtaining favorable publicity, building up a good corporate image,
Public relations and handling or heading off unfavorable rumors, stories, and events

Direct connections with carefully targeted individual consumers to

Direct and both obtain an immediate response and cultivate/develop lasting
digitalmarketing customer relationships

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 The New Marketing Communications
Model
• Major factors changing today’s marketing
communications
• Changing consumers (better informed)
• 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
• Companies these days are doing less broadcasting and
more narrowcasting
• Content marketing managers create, inspire and share
brand messages and conversations.
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Integrated Marketing
Communications
Carefully integrating and
coordinating the company’s
many communications channels
to deliver a clear, consistent,
and compelling message about
the organization and its
products
Recognize all points where the
customer may encounter the
company’s brands

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KOTLER & OPRESNIK)
Figure 12.2 – Push vs. Pull
Promotion Strategy

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Push strategy

• Sales force and trade promotion are used to push the

product through channels
• Producer promotes the product to channel members
who in turn promote it to final consumers

Pull strategy

• Company spends a lot of money on consumer

advertising and promotion to induce final consumers to
buy the product, creating a demand vacuum that pulls
the product through the channel

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Figure 12.3 – Major Advertising
Decisions
Advertising Strategy

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 Setting Advertising Objectives
• Advertising objective: A specific
communication task to be accomplished with
a specific target audience during a specific
period of time
• Advertising objectives can be classified by
their primary purpose:
• To inform
• To persuade
• To remind

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Informative advertising

• Issued heavily when introducing a new-product category

• Objective is to build primary demand
• Suggest new use, build brand image, communicating customer value

Persuasive advertising

• Becomes more important as competition increases

• Objective is to build selective demand, brand preferences
• Change customer perception, persuasive to buy now

Reminder advertising

• Important for mature products

• Helps to maintain customer relationships and keep consumers
thinking about the product

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 Comparative Advertising
• Some persuasive
advertising becomes
comparative advertising
or attack advertising

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 Setting the Advertising Budget
• Advertising budget: The dollars and other
resources allocated to a product or a company
advertising program
• Methods:
• Affordable method
• Percentage-of-sales method
• Competitive-parity method
• Objective-and-task method

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 Setting the Advertising Budget
• Affordable method: Setting promotion budget
at the level management thinks the company
can afford, it ignores the effects of promotion
on sales and uncertain budget.
• Percentage-of-sales method: Setting
promotion budget at a certain percentage of
current or forecasted sales or as a percentage
of the unit sales price, don’t provide basis for
choosing a specific percentage.
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 Setting the Advertising Budget
• Competitive-parity method: Setting the
promotion budget to match competitors’
outlays, it helps prevent promotion wars &
represent industry wisdom.
• Objective-and task method: Developing the
promotion budget by
 Defining specific objectives
 Determining the tasks that must be performed to achieve
these objectives
 Estimating the costs of performing these tasks
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 Advertising Strategy
• The plan by which the company accomplishes
its advertising objectives
• Major elements:
• Creating messages
• Selecting media

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 Madison & Vine
• The merging of advertising and entertainment to break
through the clutter and create new avenues for reaching
consumers with more engaging messages
• Advertainment - Aims to make ads themselves so
entertaining that people want to watch them
• Brand entertainment or brand integrations - Making the
brand an inseparable part of some other form of
entertainment
• Most common form is product placements

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 Message Strategy
• Advertiser must next develop a compelling
creative concept
• Creative concept: Idea that brings the
advertising message strategy to life in a
distinctive and memorable way
• Creative concept guides the choice
of specific appeals to be used in an
advertising campaign

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 Execution Style
The approach, style, tone, words, and format used for executing
an advertising message
Slice of life Shows one or more “typical” people using the product in a normal
setting
Lifestyle Shows how a product fits in with a particular lifestyle
Fantasy Creates a fantasy around the product or its use
Mood or image Builds a mood or image around the product or service, such as
beauty, love, intrigue, or serenity
Musical Shows people or cartoon characters singing about the product
Personality symbol Creates a character that represents the product
Technical expertise Shows the company’s expertise in making the product
Scientific evidence Presents survey or scientific evidence that the brand is better or
better liked than one or more other brands
Testimonial evidence or Features a highly believable or likable source endorsing the
endorsement product

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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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 Percentage of people in the target
Reach market who are exposed to an ad
campaign during a given period of time

Number of times the average person in

Frequency the target market is exposed to the
message

Media Qualitative value of message exposure

through a given medium
impact

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Choosing Among Major Media Types
• Choose media that effectively and efficiently
present the message to customers
• Consider each medium’s impact, effectiveness,
and cost
• Types of medium such as TV, digital, mobile,
and social media, newspapers, direct mail,
magazines, radio and outdoor.

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 Effectiveness and the Return on
Advertising Investment
• Net return on advertising investment divided
by the costs of the advertising investment
• Advertisers should regularly evaluate the:
• Communication effects
• Sales and profit effects

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 Public Relations
• Activities designed to build good relations
with the company’s publics
• Used to promote products, people, places,
ideas, activities, nations, and organizations

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 Functions of a Public Relations
Department
• Press relations or press agency: Creating and placing
newsworthy information in the news media to attract attention.
• Product publicity: Publicizing specific products.
• Public affairs: Building and maintaining national or local
community relations.
• Lobbying: Building and maintaining relations with legislators and
government officials to influence legislation and regulation.
• Investor relations: Maintaining relationships with shareholders.
• Development: PR with donors or members of nonprofit
organizations to gain support.

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 The Role and Impact of PR
• PR has a strong impact on public awareness at
a much lower cost than advertising
• Can be a powerful brand-building tool
• Should work hand in hand with advertising
within an integrated marketing
communications program to help build brands
and customer relationships

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Looking Ahead to Chapter 13
Personal Selling
and Sales Promotion

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