Communication Customer Value

Chapter 12
Communicating
Customer Value

Advertising and Public
Relations

Copyright 2011, Pearson Education Inc. Publishing as Prentice-Hall 12 - 2
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.
Rest Stop: Previewing the Concepts
Background
About Unilever: Worlds # 2
advertiser spends $5.3 billion
on global advertising and
promotion. Less is being
spent on traditional media;
more is being invested in
online and digital.
Recognition: Unilever was
named digital marketer of the
year by Advertising Age.
However, Unilever does not
run digital campaigns in
isolation of other media;
rather, digital is integrated
with traditional media.

Unilever Integrates Digital & Traditional Media
First Stop
Implementation
How They Do It: Innovative
Web sites, viral videos, and
webisodes represent key
digital content. Real, funny TV
ads pull viewers to Web sites to
build consumer involvement
with brand. Public relations gets
clips aired on talk shows.
Results: The key benefit of all
integrated efforts is termed
superdistribution, which means
digital clips are picked up and
shown by other media for free.
Evolution created $200 million
in free media coverage.
Promotion mix (also called marketing
communications mix):
Specific blend of promotion tools that
the company uses to persuasively
communicate customer value and build
customer relationships.
The Promotion Mix
The companys total promotion mix
consists of a specific blend of:
Advertising.
Sales promotion.
Public relations.
Personal selling.
Direct marketing.
The Promotion Mix
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.

Integrated Marketing
Communications
Integrated Marketing
Communications
Integrated marketing communications
(IMC) defined:
Carefully integrating and coordinating the
companys many communication channels to
deliver a clear, consistent, and compelling
message about the organization and its
products.
A strong need for integrated marketing
communications exists.
Marketers must understand each
promotion tool when shaping the
marketing communications mix.
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.

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.
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.

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.

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.
Promotion 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.
Advertising
Advertising has been used for centuries.
U.S. advertisers spend more than $290 billion
each year; worldwide spending exceeds $604
billion.
Advertising is used by:
Business firms.
Not-for-profit organizations.
Professionals.
Social agencies.
Government.
Major Advertising Decisions
Setting advertising objectives.
Setting the advertising budget.
Developing advertising strategy.
Evaluating advertising campaigns.

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

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

Setting the advertising budget:
Affordable method.
Percentage-of-sales method.
Competitive-parity method.
Objective-and-task method.

Developing advertising strategy:
Creating advertising messages.
Message strategy and message execution must
break through the clutter.
Advertising is being merged with entertainment.
Selecting advertising media.
Set reach, frequency, and impact goals.
Choose among major media types.
Select specific media vehicles.
Decide on media timing.
Planning the message strategy:
Identify customer benefits that can be
used as advertising appeals.
Develop compelling creative concept
the big idea.
Choose an advertising appeal that is:
Meaningful.
Believable.
Distinctive.
Technical
expertise
Scientific
evidence
Testimonial
evidence or
endorsement

Slice of Life
Lifestyle
Fantasy
Mood or image
Musical
Personality
symbol
Message Execution Styles:
Message execution process:
Choose the execution style.
Choose a tone.
Use memorable, attention-getting words.
Choose format elements:
Illustration.
Headline.
Copy.
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.
Steps in advertising media selection:
Deciding on reach, frequency, impact.
Choosing among media types.
Selecting specific media vehicles.
Deciding on media timing.
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.
Each media type has specific advantages
and disadvantages.
Choosing among media types requires
consideration of the:
Mediums impact
Message effectiveness
Cost
The media mix should be regularly
reexamined.
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.
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.
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.

Other Advertising Considerations
Organization of ad function:
Small companiesone person in firm.
Large companiesad department that may
also work with an ad agency.
Advertising agencies employ specialists who
perform ad tasks better then the companys
own staff can.
Bring outside viewpoints to problem-solving.
Wide range of experience.

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.

Public Relations
Public relations:
Building good relations with the firms
various publics by obtaining favorable
publicity, building up a good corporate
image, and handling or heading off
unfavorable rumors, stories, and events.

Public Relations
Public relations departments perform
the following functions:
Press relations or press agency.
Product publicity.
Public affairs.
Lobbying.
Investor relations.
Development.
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.
Major Public Relations Tools
Corporate identity
materials
Public service
activities
Buzz marketing &
social networking
Company Web site

News
Speeches
Special events
Written materials
Audiovisual
materials

1. Define the five promotion mix tools for
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.
Rest Stop: Reviewing the Concepts

Communication Customer Value

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Chapter 12

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