Armstrong mai12 inppt_12

Copyright © 2015 Pearson Education, Inc.

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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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: Chick-fil-A

• Came up with an enduring integrated marketing communications campaign

• Key to the campaign’s success• Consistency• Plentiful use of traditional media and

nontraditional promotional tactics

• Engages customers through an assortment of in-store and social-media promotional events

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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 - IntegratedMarketing 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 ToolsPromotion 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 marketing

• More targeted and interactive• Immediate and personalized

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Figure 12.2 - Push versus Pull Promotion Strategy

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Major Advertising Decisions

Objectives setting

Budget decisions

Message decisions

Media decisions

Advertisingevaluation

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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• Timeliness• Good local market coverage• Broad acceptability and high

believability

• Short life• Poor reproduction

quality• Small pass-along

audience

Direct mail • High audience selectivity• Flexibility• No ad competition within the

same medium• Allows personalization

• Relatively high cost per exposure

• Junk mail image

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Profiles of Major Media Types

Medium Advantages LimitationsMagazines • High geographic and demographic

selectivity• Credibility and prestige• High-quality reproduction• Long life and good pass-along

readership

• Long ad purchase lead time• High cost• No guarantee of position

Radio • Good local acceptance• High geographic and demographic

selectivity• Low cost

• Audio only• Fleeting exposure• Low attention• Fragmented audiences

Outdoor • Flexibility• High repeat exposure• Low cost • Low message competition• Good positional selectivity

• Little audience selectivity• Creative limitations

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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


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

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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.Copyright © 2015 Pearson Education, Inc.

Armstrong mai12 inppt_12

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