Copyright 2017 Pearson Education, Ltd.

12 - 1
 Learning Objectives

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.

Copyright 2017 Pearson Education, Ltd. 12 - 2

 Learning Objectives

12-3. Describe and discuss the major decisions

involved in developing an advertising
program.
12-4. Explain how companies use public
relations to communicate with their
publics.

Copyright 2017 Pearson Education, Ltd. 12 - 3

 First Stop: Dove
Engaging Customers by Delivering Meaningful
Content through Advertising

Doves Campaign for Real

Beauty directly addressed
the issue of womens self-
perception in relation to
advertisements that dont
reflect the reality of
womens appearances.

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 Learning Objective 12-1

Define the five promotion mix tools for

communicating customer value.

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 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

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Learning Objective 12-1 Summary

A companys total promotion mix

consists of tools that the company uses
to engage customers, persuasively
communicate customer value, and build
customer relationships.

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 Learning Objective 12-2

Discuss the changing communications

landscape and the need for integrated
marketing communications.

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 New Marketing
Communications Model
Factors changing the face of todays marketing
communications:
Changing consumers
Changing marketing strategies
Advancements in digital technology

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 New Marketing
Communications Model

Methods successful
Clean happy
campaign began as
an online-only effort.

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 New Marketing
Communications Model
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.

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 Figure 12.1 - Integrated
Marketing Communications

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 Nature of the Promotion Tools
Promotion tool 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
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

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 Nature of the Promotion Tools
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

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Figure 12.2 - Push versus Pull
Promotion Strategy

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Learning Objective 12-2 Summary

New marketing communications model

More targeted, social, and engaging
Integrated marketing communications
Integrates and coordinates the companys many
communications channels
Delivers a clear, consistent, and compelling
message about the organization and its brands

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 Learning Objective 12-3
Describe and discuss the major decisions involved
in developing an advertising program.

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Figure 12.3 Major Advertising Decisions

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 Table 12.1 - Possible
Advertising Objectives

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 Methods of Setting the
Advertising Budget

Affordable Percentage-of-
Method Sales Method

Competitive- Objective-and-
Parity Method Task Method

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 Setting the Advertising Budget

Coca-Cola spends
hundreds of
millions of dollars
annually, but
is that half
enough or twice
too much?

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 Advertising Strategy
Accomplishes the companys advertising
objectives
Major advertising strategy elements:
Creating advertising messages
Selecting advertising media

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 Creating the Advertising Message
and Brand Content
Breaking through the clutter
Merging advertising and entertainment
Message and content strategy
Message execution
Consumer-generated content

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 Selecting Advertising 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

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 Profiles of Major Media Types
Medium Advantages Limitations

Television Good mass-marketing coverage High absolute costs

Low cost per exposure High clutter
Combines sight, sound, and Fleeting exposure
motion Less audience selectivity
Appealing to the senses

Digital, High selectivity Potentially low impact

mobile, and Low cost High audience control of
social media Immediacy content and exposure
Engagement capabilities

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 Profiles of Major Media Types
Medium Advantages Limitations

Newspapers Flexibility Short life

Timeliness Poor reproduction
Good local market coverage quality
Broad acceptability and high Small pass-along
believability audience
Direct mail High audience selectivity Relatively high cost per
Flexibility exposure
No ad competition within the Junk mail image
same medium
Allows personalization

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 Profiles of Major Media Types
Medium Advantages Limitations
Magazines High geographic and demographic Long ad purchase lead time
selectivity High cost
Credibility and prestige No guarantee of position
High-quality reproduction
Long life and good pass-along
readership
Radio Good local acceptance Audio only
High geographic and demographic Fleeting exposure
selectivity Low attention
Low cost Fragmented audiences
Outdoor Flexibility Little audience selectivity
High repeat exposure Creative limitations
Low cost
Low message competition
Good positional selectivity

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 Evaluating Advertising Effectiveness &
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

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 Organizing for Advertising
Small firms may use their sales department
staff.
Large companies may have their own
advertising departments.
Advertising agency: Assists companies in
planning, preparing, implementing, and
evaluating all or portions of their advertising
programs

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 International Advertising Decisions
Degree of adaptation
Standardization benefits
Lower advertising costs
Greater global advertising coordination
More consistent worldwide image
Standardization drawbacks
Ignores the fact that country markets differ in
their cultures, demographics, and economic
conditions

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 Problems Faced by
Global Advertisers
Countries differ in
Media costs and availability
Advertising practices
Diversity between countries requires
advertisers to adapt their campaigns to meet
local
Cultures and customs
Media characteristics
Regulations
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 Learning Objective 12-3 Summary
Advertising is the use of paid, owned, earned, and
shared media by a seller to inform, persuade, and
remind consumers about its products or organization.

Advertising decision making involves decisions about

objectives, budget, message, media, and evaluation of
results.

Return on advertising investment

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 Learning Objective 12-4

Explain how companies use public relations to

communicate with their publics.

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 Functions of Public Relations (PR)
Departments

Press relations
Product
or press Public affairs
publicity
agency

Investor
Lobbying Development
relations

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 Public Relations
Promotes products, people, ideas, organizations,
and nations

Builds good relations with consumers, investors,

the media, and communities

Rebuilds interest in commodities for trade

associations

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 Public Relations

MilkPEPs Built
With Chocolate
Milk public
relations
campaign is
repositioning
chocolate milk.

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 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 brands story
Limited and scattered use
Powerful brand-building tool

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 Major Public Relations Tools

Written
News Special events
materials

Corporate
Audiovisual Public service
identity
materials activities
materials

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Learning Objective 12-4 Summary

Public relations functions

Press agency, product publicity, public affairs,
lobbying, investor relations, and development
Public relations tools
News, special events, written materials,
audiovisual materials, corporate identity
materials, and public service activities.
Companys Web site and online social media
can be good PR vehicles
Copyright 2017 Pearson Education, Ltd. 12 - 39
 Learning Objectives

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.

Copyright 2017 Pearson Education, Ltd. 12 - 40

 Learning Objectives

12-3. Describe and discuss the major decisions

involved in developing an advertising
program.

12-4. Explain how companies use public

relations to communicate with their
publics.

Copyright 2017 Pearson Education, Ltd. 12 - 41