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12- 1 Copyright © 2011 Pearson Education Chapter 12 Communicating Customer Value: Advertising and Public Relations Veronica Mak

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Page 1: s 2015 Chp 13 Advertising and PR

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Copyright © 2011 Pearson Education

Chapter 12Communicating Customer Value:Advertising and Public Relations

Veronica Mak

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Copyright © 2011 Pearson Education

Chapter Outline

1. Define the 5 Promotion Mix tools2. Why Integrated Marketing

Communications3. Shaping the Overall Promotion

Mix4. How to develop Advertising Plan5. Why do we use Public Relations

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1. The 5 Tools in The Promotion Mix(also called Marketing Communication Mix)

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2. Integrated Marketing Communications2.1 The New marketing Communications Landscape

Technology is Changing

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2. Integrated Marketing Communications2.2 The Shifting Marketing Communications Model

• Mass media remain very important, their dominance is declining.

• Less broadcasting and more narrowcasting. • Media costs are rising, audiences are shrinking, ad

clutter is increasing, and viewers are gaining control of message exposure through technologies

• Shifting their advertising budgets away from network television in favor of more targeted, cost-effective, interactive, and engaging media – especially digital media.

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3. Shaping the Overall Promotion Mix3.1 Nature of Each Promotion Tool

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3. Shaping the Overall Promotion Mix 3.1 Nature of Each Promotion Tool

3.1.1 Advertising

LT Image and more Legitimate

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3. Shaping the Overall Promotion Mix 3.1 Nature of Each Promotion Tool

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Integrated Marketing Communications

• Recognize all points where the customer may encounter the company’s brands

• Deliver a consistent and positive message at each contact

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The “HD loves HB” integrated marketing communications campaign uses a rich, well-coordinated blend of promotion elements to successfully deliver Häagen-Dazs’ unique message

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2. Integrated Marketing Communications

2.3 The Need for Integrated Marketing Communications

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3. Shaping the Overall Promotion Mix 3.2 Promotion Mix Strategies

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Types of Consumer Products

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Summary of Product Life-Cycle Characteristics, Objectives, and Strategies

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4. Four Advertising Decisions in Advertising Program

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4. Four Advertising Decisions4.1 Setting Advertising Objectives

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Comparative Advertising

• Some persuasive advertising becomes comparative advertising or attack advertising

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Over the past few years, Verizon Wireless and AT&T have attacked each other ruthlessly in comparative ads

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4. Four Advertising Decisions 4.2 Setting the Advertising Budget

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4. Four Advertising Decisions 4.3. Developing Advertising Strategy

4.3.1 Message Decision

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Which brands do these slogans belong?

-The World’s Local Bank.-The Citi Never Sleeps.-Open Happiness.

- Think Different.- Connecting People.- I’m lovin’ it.- Where Dreams Come

True.

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4.3.1 Creating the Advertising Message

Challenge: • Clutter of other commercials, announcement,

network of promotions.

Solution:Imaginative, entertaining, rewarding messages.

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4.3.1 Creating the Advertising Message

• Advertainment - Aims to make ads themselves so entertaining that people want to watch them

• Brand entertainment or brand integrations - Making the brand an inseparable part of some other form of entertainment– Most common form is product placements

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4.3.1 Creating the Advertising Message

NBC’s The Biggest Loser and health-club chain 24 Hour Fitness have created a product placement partnership that fully and thematically integrates the brand with the show

• The merging of advertising and entertainment to break through the clutter and create new avenues for reaching consumers with more engaging messages

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Slice of life Shows one or more “typical” people using the product in a normal setting

Lifestyle Shows how a product fits in with a particular lifestyle

Fantasy Creates a fantasy around the product or its use

Mood or image Builds a mood or image around the product or service, such as beauty, love, intrigue, or serenity

Musical Shows people or cartoon characters singing about the product

Personality symbol Creates a character that represents the product

Technical expertise Shows the company’s expertise in making the product

Scientific evidence Presents survey or scientific evidence that the brand is better or better liked than one or more other brands

Testimonial evidence or endorsement

Features a highly believable or likable source endorsing the product

4.3.1 Creating the Advertising Message- Execution Styles:

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Consumer-Generated Messages

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Online crafts marketplace/community Etsy.com ran a contest inviting consumers to tell the Etsy.com story in 30-second videos. The results were “positively remarkable”

• User-generated advertising efforts can produce new ideas and fresh perspectives on the brand

• Boost consumer involvement and with the brand

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4.3.2 Media Decision

4. Four Advertising Decisions 4.3 Developing Advertising Strategy

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Choosing Among Major Media Types

• Choose media that effectively and efficiently present the message to customers

• Consider each medium’s impact, effectiveness, and cost

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Viewers most deeply engaged in the Discovery Channel’s Dirty Jobs series turned out to be truck-buying men, a ripe demographic for Ford’s F-Series pickups

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Selecting Specific Media Vehicles

• Choose the best media vehicles—specific media within each general media type

• Compute the cost per 1,000 persons reached by a vehicle

• Consider the costs of producing ads for different media

• Balance media costs against several media effectiveness factors

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Figure 12. 2 - Profiles of Major Media Types

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Medium Advantages

Television Good mass-marketing coverage; low cost per exposure; combines sight, sound, and motion; appealing to the senses

Newspapers Flexibility; timeliness; good local market coverage; broad acceptability; high believability

Internet High selectivity; low cost; immediacy; interactive capabilities

Direct mail High audience selectivity; flexibility; no ad competition within the same medium; allows personalization

Magazines High geographic and demographic selectivity; credibility and prestige; high-quality reproduction; long life and good pass-along readership

Radio Good local acceptance; high geographic and demographic selectivity; low cost

Outdoor Flexibility; high repeat exposure; low cost; low message competition; good positional selectivity

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Figure 12. 2 – Profiles of Major Media Types

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Medium Limitations

Television High absolute costs; high clutter; fleeting exposure; less audience selectivity

Newspapers Short life; poor reproduction quality; small pass-along audience

Internet Potentially low impact; the audience controls exposure

Direct mail Relatively high cost per exposure; “junk mail” image

Magazines Long ad purchase lead time; high cost; no guarantee of position

Radio Audio only; fleeting exposure; low attention (“the half-heard” medium); fragmented audiences

Outdoor Little audience selectivity; creative limitations

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Deciding on Media Planning

• Decide how to schedule the advertising over the course of a year

• Choose the pattern of ads

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Return on Advertising Investment

• Net return on advertising investment divided by the costs of the advertising investment

• Advertisers should regularly evaluate the:– Communication effects– Sales and profit effects

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Group Project Due (20%)

Group Project Due Date:• 27 March 8:30am in class• Hardcopy of your presentation handoutsPresentation• Dress code: Business casual• Maximum 15 minutes (5min. Q&A)• Every member should participate in presenting the

project• Presentation evaluation

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Final Exam (30%)

Time and Venue:• 10 April (8:30am) , in class.Format: • Multiple choices (70%); short-questions(30%).Scope:• Text Book +ppt + Lecture notes • For multiple choices, scope includes chapters

after mid-term

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Individual Marketing Plan (20%)

• Due Date: 17 April 2015• Hardcopy of your individual marketing plan

and VeriGuide signature page to be delivered to Cheung Yu-tung building, 2/F, drop-box.