Chapter 12
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Promotion Mix (marketing communications mix)
the specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships
- note that the entire marketing mix is important in communicating to the consumer, not just the promotional mix
5 Majo
-Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
Ex: broadcast, print, internet, outdoor
-says something positive about the seller's size, popularity, and success
-promotes legitimacy because o
-Sales Promotion
Short-term incentives to encourage the purchase or sale of a product or service
Ex: Discounts, coupons, displays, demonstrations, contests, cents-off deals, premiums
-attract customer attention, offer strong incentives, and can be used to dramatize produc
-Personal Selling
Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships
-between two or more people
Ex: sales presentations, trade shows, and incentive programs
-most effective tool at certain stages of the buyi
-Public Relations (PR)
Building good relations with the company;s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events
Ex: Press releases, sponsorships, special events, web page
-Direct Marketing
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships.
-build one to one relationships
Ex: Catalogs, telephone marketing, kiosks, the internet, mobile
-less public
mass marketing
selling highly standardized products to masses of customers
-developed mass-media communications techniques to support these strategies
Consumers now vs. then
can now use the internet and other technologies to seek out information on their own-- do not need to rely on the marketer for information
Marketing Strategies now vs. then
mass markets have fragmented, marketers are shifting away from mass marketing
-developing focused marketing programs designed to build closer relationships with customers in more narrowly defined micro-markets.
Communication tech now vs. then
the digital age has spawned a host of new information and communication tools- smart phones, satellite tv, internet faces.
-new media for interacting with targeted customers
-give customers more control over the nature and timing of messages they choose t
Results of shifting marketing communication model
LESS BROADCASTING and MORE NARROWCASTING
-Dominance of tv, magazines, newspapers, and other mass media are declining
-cable tv channels, made for web videos, internet catalogs, emails, blogs, cell phone content, online social networks are taking their pla
Chaos scenario
the mass exodus of ad revenue from traditional broadcast media due to audience splitting and anti-ad software
- some say that it will be more gradual like P & G still spend a lot on their advertising budget on mass media and only 5 percent on digital outl
Integrated Marketing Communications (IMC)
carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent, and compelling message about the organization and its products
-advertisers are adding a broad selection of more-specialized and highly targe
Advertising (pp. 385) decisions ***
four important decisions when developing an advertising program
-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.
-used to inform, persuade, or remind
OVERALL OBJECTIVE IS TO HELP BUILD CUSTOMER RELATIONSHIPS BY COMMUNICATING CUSTOMER VALUE
--Informative Advertising
used heavily when introducing a new product category
-build primary demand
EX: Sony had to inform customers about the benefits of DVDs
--Persuasive Advertising
becomes more important as competition increases
-build selective demand
Ex: once DVD players became established, sony began trying to persuade consumers that its brand offered the best quality for their money
---"Comparative advertising (attack advertising)
a company directly or indirectly compares its brand with one or more other brands
--Reminder Advertising
is important for mature products- it helps to maintain customer relationships and keep consumers thinking about the product.
Ex: Coke builds and maintains the brand with ads rather to inform or persuade
-ADVERTISING BUDGET
The dollars and other resources allocated to a product or company advertising program
-cutting budget of advertising does little to harm short term sales
Four common methods used to set the total budget for advertising
1) affordable method
2) percentage-o
--affordable method
setting the promotion budget at the level management thinks the company can afford
-small businesses use this method
-ignores the effects of promotion on sales
--percentage of sales method
setting their promotion budget at a certain percentage of current or forecasted sales
-simple to use
-wrongly views sales as a "cause" of promotion rather than a "result"
-based on availability of funds rather than on opportunity
--Competitve-Parity Method
setting their promotion budgets to match competitor's outlays
Arguments FOR but NEITHER IS VALID
-competitor's budgets represent the collective wisdom of the industry
-spending what competitors spend help prevent promotion wars.
--Objective-and-Task Method
Developing the promotion budget by
(1) defining specific objectives
(2) determining the tasks that must be performed to achieve these objectives, and
(3) estimating the costs of performing these tasks.
The sum of these costs is the proposed promotion budg
-ADVERTISING STRATEGY
the strategy by which the company accomplishes its advertising objectives
consists of two major elements:
1) creating advertising messages
2) selecting advertising media
--Madison & Vine
a term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages
1) advertainment - make ads themselves so entertaining or us
--Message Strategy
the first step in creating effective advertising messages is to plan a "message strategy" - to decide what general message will be communicated to the consumers
-developing an effective message strategy begins with identifying customer "benefits" that can
--Creative Concept
2nd step in creating effective advertising messages is creating the compelling "big idea" that will bring the advertising message strategy to life in a distinctive and memorable way
-may emerge as a visualization, a phrase, or a combination of the two
thr
EXECUTION STYLES FOR ADVERTISEMENTS
the approach, style, tone, words, and format used for executing an advertising message.
tone- for P & G always uses a positive tone.
words- memorable and attention grabbing
format- small change in ad design can make a big difference in the effect
-Slice of life
shows one or more "typical" people using the product in a normal setting
Ex: silk soymilk "rise and shine" advertisement shows a young professional starting the day with a healthier breakfast and high hopes
-Lifestyle
shows how a product fits in with a particular lifestyle
Ex: Athleta active wear shows woman in a complex young pose and states "If your body is your temple, build it one piece at a time
-Fantasy
creates a fantasy around the product or its use
Ex: Travelers insurance ad features a gentleman carrying a giant red umbrella (the company's symbol.) the man helps people by using the umbrella to protect them from the rain, sail them across a flooded rive
-Mood or Image
builds a mood or image around the product or service, such as beauty, love, intrigue, or serenity.
Ex: India's Ministry of Tourism feature images of inspiring experiences and vibrant local landscapes in "Incredible !ndia
-Musical
shows people or cartoon characters singig about the product
Ex: Free credit report.com
-Personality Symbol
creates a character that represents the product
Ex: Mr. Clean, Tony the tiger, E-trade baby, GEICO cavemen
-Technical Experience
shows the company's expertise in making the product.
Ex: Jim Koch of Samuel adams talks about his experience in brewing beer
-Scientific Evidence
presents survey or scientific data that the brand is better or better liked than one or more other brands.
Ex: Crest toothpaste has used SE to convince buyers that crest is better than other brands at fighting cavities.
-Testimonial Evidence and Endorsement
features a highly believable or likable source endorsing the product
Ex: Subway spokesman Jared, who lost 245 pounds on a Subway diet
Consumer-Generated Messages
companies take advantage of the videos available on google, youtube, and myspace that consumers make
Ex: Diet coke and mento videos are free advertisements for Coke
Ex: Doritos competition
ADVERTISING MEDIA
the vehicles through which advertising messages are delivered to their intended audiences
major steps in selection
1) deciding on reach, frequency, and impact
2) choosing among major media types
3) selecting specific media vehicles
4) deciding on media ti
-Reach
a measure of the percentage of people in the target market who are exposed to this ad campaign during a given period of time
-Frequency
a measure of how many times the average person in the target market is exposed to the message.
-Media Impact
the qualitative value of a message exposure through a given medium
Choosing Among Major Media Types (p. 395)
Tv - good mass-marketing coverage, low cost per exposure -- high cost, high clutter, less audience selectivity
Internet- High selectivity, low cost, immediacy -- relatively low impact, audience controls exposure
Newspapers - flexible, timeliness, good loc
PUBLIC RELATIONS
may perform any or all of the following functions
-press relations or press agency
-product publicity
-public affairs
-lobbying
-investor relations
-development
have strong impact on public awareness at a much lower cost than advertising.
-sometimes descr