Mktg 2020 Fall 2024 Chapter 12 PDF

ENGAGING CONSUMERS AND COMMUNICATING CUSTOMER VALUE: ADVERTISING AND PUBLIC RELATIONS CHAPTER 12 October 26, 2024 Copyright © 2021 Pearson Canada, Inc. All Rights Reserved PROMOTION MIX A company’s total promotion mix (also called its marketing commu...

ENGAGING CONSUMERS AND COMMUNICATING CUSTOMER VALUE: ADVERTISING AND PUBLIC RELATIONS CHAPTER 12 October 26, 2024 Copyright © 2021 Pearson Canada, Inc. All Rights Reserved PROMOTION MIX A company’s total promotion mix (also called its marketing communications mix) consists of tools that the company uses to engage customers, persuasively communicate customer value, and build customer relationships. Copyright © 2021 Pearson Canada, Inc. All Rights Reserved PROMOTION MIX A promotion mix, or marketing communications mix, is a specific blend of promotion tools:  Advertising  Sales promotion  Personal selling  Public relations (PR)  Direct and digital marketing Copyright © 2021 Pearson Canada, Inc. All Rights Reserved  ADVERTISING & PERSONAL Promotion SELLING Description tool 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 Personal interaction between two or more selling people Allows all kinds of customer relationships to spring up Buyer feels a greater need to listen and respond Most expensive promotion Copyright © 2021 tool Pearson Canada, Inc. All Rights Reserved SALES PROMOTION, PUBLIC RELATIONS & DIGITAL 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 short-lived effects 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 More targeted and interactive marketing Immediate and personalized Copyright © 2021 Pearson Canada, Inc. All Rights Reserved  NEW MARKETING COMMUNICAT IONS MODEL Factors changing the face of today’s marketing communications:  Changing consumers  Changing marketing strategies  Advancements in digital technology 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. Copyright © 2021 Pearson Canada, Inc. All Rights Reserved  Marketers are becoming content marketing managers, not just ad creators and placers. CONTE They create, inspire and share brand messages and conversations NT with and among customers across MARKE a mix of paid, owned, earned and TING shared media. Includes blog posts, infographics, videos, podcasts, social media, memes, user-generated content and newsletters. Copyright © 2021 Pearson Canada, Inc. All Rights Reserved INTEGRAT Carefully integrating and ED coordinating the company’s MARKETIN many communications G channels to deliver a clear, COMMUNI consistent and compelling message about the CATIONS organization and its brands. (IMC) Copyright © 2021 Pearson Canada, Inc. All Rights Reserved INTEGRATED MARKETING COMMUNICATIONS Copyright © 2021 Pearson Canada, Inc. All Rights Reserved Copyright © 2021 Pearson Canada, Inc. All Rights Reserved MAJOR ADVERTISING DECISIONS Copyright © 2021 Pearson Canada, Inc. All Rights Reserved  ADVERTISIN G OBJECTIVE Advertising objective: a specific communication task to be accomplished with a specific target audience during a specific period of time. Can be classified by primary purpose – to remind, inform and persuade (RIP). Remind: Maintaining customer relationships, keeping brand top-of- mind, reminding where to buy. Inform: Explaining, describing, telling, correcting, suggesting. Persuade: Building brand preference, creating customer engagement, encourage-ing brand switching, persuading to buy. Copyright © 2021 Pearson Canada, Inc. All Rights Reserved  An advertising budget refers to the dollars and other resources allocated to a product or a company advertising program. GEICO spends more than US$1 billion a year on its SETTING THE award-winning ad campaigns, but is ADVERTISING that too little, just right, or too much? BUDGET Copyright © 2021 Pearson Canada, Inc. All Rights Reserved  METHODS USED TO SET ADVERTISING BUDGET  Affordable method sets the promotion budget at the level management thinks the company can afford.  Percentage-of-sales method sets the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price.  Competitive-parity method sets the promotion budget to match competitors’ outlays.  Objective-and-task method involves developing the promotion budget by defining specific objectives, determining the tasks that must be performed to achieve these objectives and estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget. The most logical method but also the most difficult. Copyright © 2021 Pearson Canada, Inc. All Rights Reserved EVALUATING ADVERTISING EFFECTIVENESS AND 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 Copyright © 2021 Pearson Canada, Inc. All Rights Reserved ADVERTISING STRATEGY Accomplishes the company’s advertising 1. Creating objectives advertising Two major messages advertising strategy elements: 2. Selecting advertising media Copyright © 2021 Pearson Canada, Inc. All Rights Reserved CREATING ADVERTISING MESSAGE AND BRAND CONTENT Breaking through the clutter Merging advertising and entertainment Message and brand content strategy Message execution Consumer-generated content Copyright © 2021 Pearson Canada, Inc. All Rights Reserved Adam Driver and Squarespace https://www.youtube.com/watch?v=lIf27sHt2QA Copyright © 2021 Pearson Canada, Inc. All Rights Reserved  SELECTIN G ADVERTISI NG MEDIA Advertising media: Vehicles through which advertising messages are delivered to their intended audiences. Steps in advertising media selection:  Determining reach, frequency, impact and engagement  Choosing among major media types  Selecting specific media vehicles  Choosing media timing Copyright © 2021 Pearson Canada, Inc. All Rights Reserved PROFILES OF MAJOR MEDIA TYPES Medium Advantages Limitations Television Good mass-marketing High absolute costs; coverage; low cost per high clutter; fleeting exposure; combines exposure; less audience sight, sound, and motion; selectivity appealing to the senses Digital, mobile, High selectivity; low cost; Potentially low impact; and social immediacy; engagement high audience control of media Capabilities content and exposure Newspapers Flexibility; timeliness; Short life; poor good local market reproduction quality; coverage; broad small pass-along acceptability; high audience. believability Direct mail High audience selectivity; Relatively high cost per flexibility; no ad exposure; “junk mail” competition within the image. same medium; allows Copyright © 2021 Pearson Canada, Inc. All Rights Reserved personalization PROFILES OF MAJOR MEDIA TYPES – CONT’D Medium Advantages Limitations Magazines High geographic and Long ad purchase lead demographic time; high cost; no selectivity; credibility guarantee of position and prestige; high- quality reproduction; long life and good pass-along readership Radio Good local acceptance; Audio only; fleeting high geographic and exposure; low attention demographic (“the half-heard” medium); selectivity; low cost. fragmented audiences Outdoor Flexibility; high repeat Little audience selectivity; exposure; low cost; creative limitations good positional selectivity Copyright © 2021 Pearson Canada, Inc. All Rights Reserved  Public relations involves building good relations with the company’s various publics/stakeholders.  Create and place newsworthy information in the news media to attract attention  Promotes products, people, ideas, organizations, and nations  Builds good relations with consumers, investors, the media and communities PUBLIC  Work with donors or members of non-profit organizations to gain RELATIONS (PR) financial or volunteer support. Copyright © 2021 Pearson Canada, Inc. All Rights Reserved 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 and daily conversations  Limited and scattered use  Powerful brand- building tool Copyright © 2021 Pearson Canada, Inc. All Rights Reserved MAJOR PUBLIC RELATIONS TOOLS  News release  Special events  Written materials  Videos  Corporate identity materials  Public service announcements Copyright © 2021 Pearson Canada, Inc. All Rights Reserved