Learning Objectives (2 of 4)
12-3. Describe and discuss the major decisions involved in developing an advertising program.
12-4. Explain how companies use public relations to communicate wit
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
Setting the Advertising Budget
Coca-Cola spends hundreds of millions of dollars annually, but is that “half enough or twice too much”?
Advertising Strategy
• Factors changing the face of today’s marketing communications:
– Changing consumers – Changing marketing strategies – Advancements in digital technology
Direct and
• More targeted and interactive
digital marketing • Immediate and personalized
Figure 12.2 - Push versus Pull Promotion Strategy
Learning Objective 12-2 Summary
Suggesting new uses for a product
Building a brand and company image Informing the market of a price change
Telling the market about a new product Describing available services and support
12-1. Define the five promotion mix tools for communicating customer value.
12-2. Discuss the changing communications landscape and the need for integrated marketing communications.
• Accomplishes the company’s advertising objectives • Major advertising strategy elements:
– Creating advertising messages – Selecting advertising media
Creating the Advertising Message and Brand Content
• Breaking through the clutter • Merging advertising and entertainment • Message and content strategy • Message execution • Consumer-generated content
Nature of the Promotion Tools (2 of 2)
Promotion tool
Description
Sales promotion • Wide assortment of tools with unique qualities • Attracts attention and offers incentives to purchase • Used to dramatize product offers and boost sales • Invites and rewards quick response but has shortlived effects
Learning Objective 12-2
Discuss the changing communications landscape and the need for integrated marketing communications.
New Marketing Communications Model (1 of 3)
Explaining how a product works
Correcting false impressions
Persuasive Advertising
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Building brand preference
Persuading customers to purchase now
Encouraging switching to a brand
may be needed in the near future
mind during off-seasons
Methods of Setting the Advertising Budget
• Affordable Method • Percentage-of-Sales Method • Competitive-Parity Method • Objective-and-Task Method
• 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
• Content marketing managers create, inspire and share brand messages and conversations.
Figure 12.1 – Integrated Marketing Communications
Nature of the Promotion Tools (1 of 2)
Reminder Advertising
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Maintaining customer relationships
Reminding consumers where to buy the product
Reminding consumers that the product Keeping the brand in a customer’s
Figure 12.3 Major Advertising Decisions
Table 12.1 - Possible Advertising Objectives (1 of 2)
Informative Advertising
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Communicating customer value
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
– Delivers a clear, consistent, and compelling message about the organization and its brands
Learning Objective 12-3
Describe and discuss the major decisions involved in developing an advertising program.
New Marketing Communications Model (2 of 3)
Method’s successful “Clean happy” campaign began as an online-only effort.
New Marketing Communications Model (3 of 3)
– Advertising – Sales promotion – Personal selling – Public relations (PR) – Direct and digital marketing
Learning Objective 12-1 Summary
A company’s total promotion mix consists of tools that the company uses to engage customers, persuasively communicate customer value, and build customer relationships.
First Stop: GEICO- From Bit Player to Behemoth through Good Advertising