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![Page 1: Prentice Hall, Copyright 2009 1 Communicating Customer Value: Advertising and Public Relations Chapter 12 Next Exit.](https://reader035.fdocuments.net/reader035/viewer/2022070407/56649e105503460f94afadaf/html5/thumbnails/1.jpg)
Communicating Communicating Customer Value:Customer Value:
Advertising Advertising and and
Public RelationsPublic Relations
Chapter 12Next Exit
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12-2Prentice Hall, Copyright 2009
Rest Stop:Rest Stop: Previewing the ConceptsPreviewing the Concepts
1. Discuss the process and advantages of integrated marketing communications in communicating customer value.
2. Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix.
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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12-3Prentice Hall, Copyright 2009
GEICO – PastGEICO initially targeted
government employees and noncommissioned military officers with exceptional driving records.
Used direct mail and telephone to market directly to consumers.
Passed cost savings on to customers via lower premiums.
GEICO –GEICO – Building RelationshipsBuilding RelationshipsCase StudyCase Study
GEICO – PresentPurchased by Warren Buffet
who increased ad spending.All ads feature the “15 minutes
could save you 15% or more on car insurance” value proposition.
Funny ads (talking gecko, “good news,” “Cavemen,” testimonials with celebrity translation) have resulted in 91% awareness and double-digit market share gains.
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Prentice Hall, Copyright 2009 12-4
Figure 12.1Figure 12.1Integrated Marketing Integrated Marketing
CommunicationsCommunications
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12-5Prentice Hall, Copyright 2009
Several factors are changing the face of marketing communications:– Consumers are better informed and more
communications empowered.– Mass markets have fragmented, leading to
a shift away from mass marketing.– Changes in communications technology
have created new media for interacting with targeted consumers.
Integrated Marketing Integrated Marketing CommunicationsCommunications
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12-6Prentice Hall, Copyright 2009
Firms are doing less broadcasting and more narrowcasting.– Specialty magazines– Cable TV– Video on demand– Internet catalogs– Podcasts– Product placements in TV and video games
Integrated Marketing Integrated Marketing CommunicationsCommunications
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12-7Prentice Hall, Copyright 2009
Integrated Marketing Integrated Marketing CommunicationsCommunications
A strong need for integrated marketing communications (IMC) exists because conflicting messages from different sources can create confusion or blur brand perceptions.
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12-8Prentice Hall, Copyright 2009
Integrated Marketing Integrated Marketing CommunicationsCommunications
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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12-9Prentice Hall, Copyright 2009
Nikon Uses IMC
Nikon’s TV and print ads are consistent and direct consumers to their Web
site.
Marketing in Action
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12-10Prentice Hall, Copyright 2009
Shaping the Shaping the Overall Promotion MixOverall 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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12-11Prentice Hall, Copyright 2009
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– Most expensive promotion tool
Shaping the Shaping the Overall Promotion MixOverall Promotion Mix
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12-12Prentice Hall, Copyright 2009
Nature of sales promotion:– 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
Shaping the Shaping the Overall Promotion MixOverall Promotion Mix
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12-13Prentice Hall, Copyright 2009
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
Shaping the Shaping the Overall Promotion MixOverall Promotion Mix
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12-14Prentice Hall, Copyright 2009
Nature of direct marketing:– Many forms of direct marketing exist– Direct marketing forms share four primary
characteristics:• Nonpublic
• Immediate
• Customized
• Interactive
– Well suited to highly targeted marketing
Shaping the Shaping the Overall Promotion MixOverall Promotion Mix
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12-15Prentice Hall, Copyright 2009
Promotion Mix StrategiesPromotion Mix Strategies
Push strategy:– Promotion strategy that calls for using
the sales force and trade promotion to push the product through channels.
Pull strategy:– Promotion strategy that calls for
spending a lot on advertising and consumer promotion to induce final consumers to buy the product.
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Prentice Hall, Copyright 2009 12-16
Figure 12.2Figure 12.2Push vs. Pull Promotion StrategyPush vs. Pull Promotion Strategy
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12-17Prentice Hall, Copyright 2009
AdvertisingAdvertising
Advertising has been used for centuries. U.S. advertisers spend more than $285
billion each year; worldwide spending exceeds $604 billion.
Advertising is used by:– Business firms– Not-for-profit organizations– Professionals– Social agencies– Government
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Prentice Hall, Copyright 2009 12-18
Figure 12.3Figure 12.3Major Advertising DecisionsMajor Advertising Decisions
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12-19Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor Advertising Decisions
Advertising objective:– 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:– Inform– Persuade– Compare– Remind.
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12-20Prentice Hall, Copyright 2009
What’s This Ad’s Objective?
Marketing in Action
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12-21Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor Advertising Decisions
Setting the advertising budget:– Affordable method
– Percentage-of-sales method
– Competitive-parity method
– Objective-and-task method
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2212-22Prentice Hall, Copyright 2009
Advertising StrategyAdvertising Strategy
The strategy by which the The strategy by which the company accomplishes its company accomplishes its advertising objectives. It advertising objectives. It
consists of two major consists of two major elements: creating advertising elements: creating advertising
messages and messages and selecting advertising media.selecting advertising media.
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12-23Prentice Hall, Copyright 2009
Developing advertising strategy:– Creating advertising messages
• Message strategy and message execution must break through the clutter
– Selecting advertising media• Set reach, frequency, and impact goals
• Choose among major media types
• Select specific media vehicles
• Decide on media timing
Major Advertising DecisionsMajor Advertising Decisions
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2412-24Prentice Hall, Copyright 2009
““Madison & Vine”Madison & Vine”
A term that has come to represent A term that has come to represent
the merging of advertising and the merging of advertising and entertainment in an effort to break entertainment in an effort to break through the clutter and create new through the clutter and create new avenues for reaching consumers avenues for reaching consumers with more engaging messages.with more engaging messages.
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12-25Prentice Hall, Copyright 2009
Melding Ads and Entertainment
Marketing in Action
The aim of advertainment is to make ads so fun, entertaining, or useful that people want to watch them.
Branded entertainment involves making the brand an inseparable part of some other form of entertainment.
Visit the brandgames.com Web site, click “The Work” button, and learn more.
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12-26Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor Advertising Decisions
Planning the message strategy:– Identify customer benefits
– Develop compelling creative concept—the “Big Idea”
– Advertising appeals should be:•Meaningful
•Believable
•Distinctive
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12-27Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor Advertising Decisions
Technical Expertise
Scientific Evidence
Testimonial Evidence or Endorsement
Slice of Life Lifestyle Fantasy Mood or Image Musical Personality
Symbol
Message Execution Styles:
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12-28Prentice Hall, Copyright 2009
Quick FlickQuick Flick
Marketing American Express
Click to play video
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12-29Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor 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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12-30Prentice Hall, Copyright 2009
Analyze This Ad!
Marketing in Action
What is the message execution style?
What is the tone of the ad?
Are the words used attention-getting and memorable?
How does the illustration work with the rest of the ad?
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12-31Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor 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
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12-32Prentice Hall, Copyright 2009
Crash the Super Bowl
Marketing in Action
The Doritos “Crash the Super Bowl Challenge” contest invited consumers to create their own video ads.
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12-33Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor Advertising Decisions
Setting media objectives:– Reach: Percentage of people exposed
to ad.
– 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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12-34Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor Advertising Decisions
Consumer-generated messages:– 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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12-35Prentice Hall, Copyright 2009
Fuel for ThoughtFuel for Thought
Think about the consumer-generated advertisements that you might have seen recently.
How did you find out about them?
What makes consumer-generated ads worth watching?
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12-36Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor Advertising Decisions
Each media type has specific advantages and disadvantages.
Choosing among media types requires consideration of the:– Medium’s impact– Message effectiveness– Cost
Media mix should be regularly reexamined.
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12-37Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor 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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12-38Prentice Hall, Copyright 2009
Major Advertising DecisionsMajor Advertising Decisions
Must also decide 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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12-39Prentice Hall, Copyright 2009
Evaluating Advertising and Evaluating Advertising and Return on Advertising InvestmentReturn on Advertising Investment
Return on advertising investment:– Is equal to the net return on advertising
investment divided by the costs of the advertising investment.
Evaluating advertising involves:– Measuring the communication effects of an
ad—“Copy Testing.”– Measuring the sales effects of an ad:
• Is the ad increasing sales?
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12-40Prentice Hall, Copyright 2009
Other Advertising Other Advertising ConsiderationsConsiderations
Organization of ad function:– Small companies—one person in firm– Large companies—ad department that may
also work with an ad agency– Advertising agencies employ specialists
who perform ad tasks better then the company’s own staff can.• Bring outside viewpoints to problem-solving
• Wide range of experience
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12-41Prentice Hall, Copyright 2009
Other Advertising Other Advertising ConsiderationsConsiderations
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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12-42Prentice Hall, Copyright 2009
Standardized Worldwide Advertising
Marketing in Action
Gillette’s ads for its Venus razor are virtually the same worldwide.
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12-43Prentice Hall, Copyright 2009
Public RelationsPublic Relations
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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12-44Prentice Hall, Copyright 2009
Public RelationsPublic 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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12-45Prentice Hall, Copyright 2009
Public Relations Role and ImpactPublic 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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12-46Prentice Hall, Copyright 2009
Major Public Relations ToolsMajor Public Relations Tools
Corporate identity materials
Public service activities
Social networking Company Web
site
News Speeches Special events Written
materials Audiovisual
materials
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12-47Prentice Hall, Copyright 2009
Company Web Sites
Marketing in Action
Company Web sites can be important PR vehicles. Butterball’s site offers recipes, carving tips, and more.
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12-48Prentice Hall, Copyright 2009
Rest Stop:Rest Stop: Reviewing the ConceptsReviewing the Concepts
1. Discuss the process and advantages of integrated marketing communications in communicating customer value.
2. Define the five promotion tools and discuss the factors that must be considered in shaping the overall promotion mix.
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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12-49Prentice Hall, Copyright 2009
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 © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice HallPublishing as Prentice Hall