Transcript Public relations

Chapter 12
Promotion Mix:
Communicating Customer Value
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Samsung:
http://www.youtube.com/watch?v=qXpVhTiePHQ&fe
ature=PlayList&p=9326466B81B9D840&index=4
Tea:
http://www.youtube.com/watch?v=K_zEiNPNo5A&fe
ature=related
NBK: http://www.youtube.com/watch?v=cQJsc3QnQc
360 Mall:
http://www.youtube.com/watch?v=4c7Bj3isXFI
The Promotion Mix
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The company’s total promotion mix (also called the marketing communications
mix) consists of a specific blend of:
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Advertising:
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Sales promotion:
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Personal presentation by the firm’s sales force for the purpose of making sales
and building customer relationships.
Direct marketing:
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Short-term incentives to encourage the purchase or sale of a product or service
(coupons, discounts, contests, lottery,…).
Personal selling:
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Any paid form of non-personal presentation and promotion of ideas, goods, or
services by an identified sponsor.
Direct connections with carefully targeted individual consumers to both obtain an
immediate response and cultivate lasting customer relationships (direct mails,
catalogs, telephone marketing, online marketing,…).
Public relations:
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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.
Integrated Marketing Communications
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Several factors are changing the face of marketing
communications:
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Consumers are better informed and more communications
empowered.
Mass markets have fragmented, leading marketers to a shift
away from mass marketing.
Changes in communications technology have created new media
for interacting with targeted consumers.
These factors have shifted the marketing
communications model so that firms are doing less
broadcasting and more narrowcasting.
Integrated Marketing Communications
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A strong need for integrated marketing
communications exists.
Integrated marketing communications:
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Carefully integrating and coordinating the
company’s many communication channels to
deliver a clear, consistent, and compelling
message about the organization and its products.
Shaping the Overall Promotion Mix
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Nature of advertising:
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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
Shaping the Overall Promotion Mix
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Nature of sales promotion:
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Wide assortment of tools which depends on
company’s objectives
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, what does it mean?
Shaping the Overall Promotion Mix
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Nature of personal selling:
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Involves personal interaction between two or more
people
Most effective tool at building preferences
Allows relationship building and two-way
communication
Requires long-term commitment to sales force
Most expensive promotion tool
Shaping the Overall Promotion Mix
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Nature of direct marketing:
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Many forms of direct marketing exist.
Direct marketing forms share four primary
characteristics:
 Nonpublic
 Immediate/directed to a specific person
 Customized
 Interactive
Well suited to highly targeted marketing.
Shaping the Overall Promotion Mix
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Nature of public relations:
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Very believable
Reaches people who avoid salespeople and ads
Can dramatize a company or product
Tends to be used as an afterthought
Can be effective and economical
Promotion Mix Strategies
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Push strategy:
Promotion strategy that calls for using the sales
Manufacturer
Wholesaler
Consumer
force and trade
promotion to Retailer
push the product
through channels.
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Pull strategy:
Promotion strategy that calls for spending a lot on
Manufacturer
Wholesaler
Retailer to induce
Consumer
advertising and
consumer promotion
final consumers to buy the product.
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Push vs. Pull Strategies
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Push strategy
Manufacturer
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Wholesaler
Retailer
Consumer
Wholesaler
Retailer
Consumer
Pull strategy
Manufacturer
Advertising
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Advertising has been used for centuries.
U.S. advertisers spend more than $285 billion each year;
worldwide spending exceeds $604 billion.
Advertising is used by:
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Business firms
Not-for-profit organizations
Professionals
Social agencies
Government
Major Advertising Decisions
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Setting advertising objectives
Setting the advertising budget
Developing advertising strategy
Evaluating advertising campaigns
Major Advertising Decisions
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Advertising objective:
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Specific communication task to be accomplished
with a specific target audience during a specific
period of time.
Advertising objectives can be classified by
purpose:
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Inform (e.g., new Crest toothpaste)
Persuade (e.g., emphasize the benefits)
Compare (e.g., between competitors; not allowed in
Kuwait, but very common in USA)
Remind (e.g., Coke, Pepsi)
Major Advertising Decisions
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Setting the advertising budget:
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Affordable method
Percentage-of-sales method
Competitive-parity method
Objective-and-task method
Major Advertising Decisions
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Developing advertising strategy:
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Creating advertising messages.
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Message strategy and message execution must break through
the clutter
Selecting advertising media.
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Set reach, frequency, and impact goals
 Reach: Percentage of people exposed to ad.
 Frequency: Number of times a person is exposed to
advertisement.
 Media Impact: The qualitative value of a message
exposure through a given medium.
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Choose among major media types
Select specific media vehicles
Decide on media timing
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Evaluating Advertising and Return on
Advertising Investment
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Return on advertising investment:
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Is equal to the net return on advertising investment divided
by the costs of the advertising investment.
Evaluating advertising involves:
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Measuring the communication effects of an ad—“Copy
Testing.”
Measuring the sales effects of an ad:
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Is the ad increasing sales?
Other Advertising Considerations
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Organization of ad function:
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Small companies—one person in firm.
Large companies—ad department that may also
work with an ad agency.
Advertising agencies employ specialists who
perform ad tasks better then the company’s own
staff can.
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Bring outside viewpoints to problem-solving.
Wide range of experience.
Public Relations
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Public relations:
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Building good relations with the firm’s various
publics by obtaining favorable publicity, building
up a good corporate image, and handling or
heading off unfavorable rumors, stories, and
events.
Public Relations
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Public relations departments perform the
following functions:
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Press relations or press agency
Product publicity
Public affairs
Lobbying
Investor relations
Development
Public Relations Role and Impact
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Public relations:
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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
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News
Speeches
Special events
Written materials
Audiovisual materials
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Corporate identity
materials
Public service activities
Social networking
Company Web site