1. Marketing Management (MKT 261)
Dr. Mohammed Almossawi
Chapter Twelve
Communicating Customer Value: Advertising, Sales Promotion, and Public Relations
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2. The Marketing Communications (Promotion) Mix
Advertising
Sales Promotion
Public Relations
Personal Selling
Direct Marketing
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3. New Communications Realities
Mass markets have fragmented, leading to a shift away from mass marketing.
Improvements in information technology are speeding movement toward segmented marketing.
These factors have shifted the marketing communications model.
Less broadcasting
More narrow casting
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4. Integrated Marketing Communications
Using IMC, the company carefully integrates and coordinates its many communication channels to deliver a clear, consistent, and compelling message about the organization and its brands.
Several factors influence the choice of promotional tools.
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5. Advertising Can reach masses of geographically dispersed buyers.
Can repeat a message many times.
Is impersonal, one-way communication.
Can be very costly for some media types.
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6. Personal Selling
Involves personal interaction between two or more people.
Most effective tool at building preferences, convictions and actions.
Allows relationship building.
Most expensive promotion tool; requires long-term commitment.
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7. Sales Promotion Wide assortment of tools. Attracts consumer attention.
Offers strong incentives to buy.
Invites and rewards quick consumer response.
Effects are short-lived.
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8. Public Relations Very believable.
Reaches people who avoid salespeople and ads.
Can dramatize a company or product.
Tends to be used as an afterthought.
Planned use can be effective and economical.
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9. Direct Marketing Many forms that share four primary characteristics:
Nonpublic
Immediate
Customized
Interactive
Well suited to highly targeted marketing.
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10. Promotion Mix Strategies
Push Strategy
Producer directs its marketing activities toward channel members to induce them to carry the product and promote it to the final consumers.
Pull Strategy
Producer directs its marketing activities toward final consumers to induce them to buy the product.
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11. Advertising Advertising has been used for centuries.
U.S. advertisers spend more than $264 billion each year; worldwide spending approaches $550 billion.
Advertising is used by:
Business firms
Nonprofit organizations
Professionals
Social agencies
Government
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12. Major Advertising Decisions
Setting advertising objectives
Setting the advertising budget
Developing advertising strategy
Evaluating advertising campaigns
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13. 1. Setting Advertising Objectives
specific communication task to be accomplished with a specific target audience during a specific period of time.
Classified by Purpose:
Inform
Persuade
Compare
Remind
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14. 2. Setting the Advertising Budget
Affordable method
Percentage-of-sales method
Competitive-parity method
Objective-and-task method
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15. Sales Promotion
Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or service.
The idea behind sales promotion is to generate immediate sales.
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16. Rapid Growth of Sales Promotion
Sales promotion can take the form of consumer, business, trade, or sales force promotions.
Rapid growth in the industry has been achieved because:
Product managers are facing more pressure to increase their current sales
Companies face more competition
Advertising efficiency has declined
Consumers have become more deal oriented
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17. Consumer Promotion Objectives:
Increase short-term sales
Help build long-term market share
Many tools exist which can help to achieve these objectives.
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18. Consumer Sales Promotion Tools
Samples
Coupons
Cash refunds
Price packs
Premiums
Advertising Specialties
Patronage rewards
Point-of-purchase displays
Demonstrations
Contests
Sweepstakes
Games
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19. Public Relations Public Relations
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.
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20. Public Relations Functions
Press relations or press agency
Product publicity
Public affairs
Lobbying
Investor relations
Development
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21. Public Relations Role & Impact
May strongly impact public awareness at a lower cost than advertising.
Results can be spectacular.
Beginning to play an increasingly important brand-building role.
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22. Public Relations Tools
News
Speeches
Special events
Buzz marketing
Mobile marketing
Written materials
Audiovisual materials
Corporate identity materials
Public service activities
Company Web site
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