S 2015 CHP 13 Advertising and PR

Chapter 12
Communicating Customer Value:

Advertising and Public Relations
Veronica Mak
12- 1
Copyright 2011 Pearson Education
Chapter Outline
1. Define the 5 Promotion Mix
tools
2. Why Integrated Marketing
Communications
3. Shaping the Overall Promotion
Mix
4. How to develop Advertising
Plan
5. Why do we use Public Relations
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1. The 5 Tools in The Promotio

n Mix
(also called Marketing
Communication Mix)
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2. Integrated Marketing
Communications
2.1 The New marketing Communications
Landscape
Technology is Changing
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2. Integrated Marketing
Communications
2.2 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 Mix
3.1 Nature of Each Promotion Tool
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3.1.1
Advertising
LT Image and
more Legitimate
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Integrated Marketing
Communications
Recognize all
points where the
customer may
encounter the
companys brands
Deliver a
consistent and
positive message
at each contact
The HD loves HB integrated

marketing communications
campaign uses a rich, wellcoordinated blend of promotion
elements to successfully
deliver Hagen-Dazs unique
message
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2. Integrated Marketing Communications
2.3 The Need for

Integrated Marketing Communications
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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 Decisions

4.1
Setting Advertising Objectives
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Comparative Advertising
Some
persuasive
advertising
becomes
comparative
advertising or
attack
advertising
Over the past few years,

Verizon Wireless and AT&T
have attacked each other
ruthlessly in comparative ads
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4.2 Setting the Advertising Budget
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4.3. Developing Advertising

Strategy
4.3.1 Message Decision
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Which brands do
these slogans belong?
-The Worlds Local
Bank.
-The Citi Never
Sleeps.
-Open Happiness.
- Think Different.
- Connecting
People.
- Im 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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12 - 20
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
The merging of
advertising and
entertainment to
break through the
clutter and create
new avenues for
reaching
consumers with
more engaging
messages
NBCs 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
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4.3.1 Creating the Advertising

Message- Execution Styles:
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 companys expertise in making the

product
Scientific
evidence
Presents survey or scientific evidence that the

brand is better or better liked than one or more 12- 23
Consumer-Generated
Messages
User-generated
advertising efforts
can produce new
ideas and fresh
perspectives on
the brand
Boost consumer
involvement and
with the brand
Online crafts
marketplace/community Etsy.com
ran a contest inviting consumers
to tell the Etsy.com story in 30second videos. The results were
positively remarkable
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12 - 24
4.3 Developing Advertising Strategy
4.3.2 Media Decision
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Choosing Among Major Media

Types
Choose media that
effectively and
efficiently present
the message to
customers
Consider each
mediums impact,
effectiveness, and
cost
Viewers most deeply

engaged in the Discovery
Channels Dirty Jobs
series turned out to be
truck-buying men, a ripe
demographic for Fords FSeries 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
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
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Figure 12. 2 Profiles of Major

Media Types
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 halfheard 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 handouts
Presentation
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%); shortquestions(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, dropbox.
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S 2015 CHP 13 Advertising and PR

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Chapter 12

Communicating Customer Value:

1. The 5 Tools in The Promotio

3. Shaping the Overall Promotion Mix

3.1 Nature of Each Promotion Tool

3. Shaping the Overall Promotion Mix

3.1 Nature of Each Promotion Tool

3. Shaping the Overall Promotion Mix

3.1 Nature of Each Promotion Tool

The HD loves HB integrated

Copyright 2011 Pearson Education

2. Integrated Marketing Communications

2.3 The Need for

3. Shaping the Overall Promotion Mix

3.2 Promotion Mix Strategies

Types of Consumer Products

Summary of Product Life-Cycle

Four Advertising Decisions in

4. Four Advertising Decisions

Setting Advertising Objectives

Over the past few years,

Copyright 2011 Pearson Education

4. Four Advertising Decisions

4.2 Setting the Advertising Budget

4. Four Advertising Decisions

4.3. Developing Advertising

4.3.1 Creating the

4.3.1 Creating the

4.3.1 Creating the

NBCs The Biggest Loser

Copyright 2011 Pearson Education

4.3.1 Creating the Advertising

Shows one or more typical people using the

Shows how a product fits in with a particular

Creates a fantasy around the product or its use

Builds a mood or image around the product or

Shows people or cartoon characters singing

Creates a character that represents the

Shows the companys expertise in making the

Presents survey or scientific evidence that the

Copyright 2011 Pearson Education

4. Four Advertising Decisions

4.3 Developing Advertising Strategy

4.3.2 Media Decision

Choosing Among Major Media

Viewers most deeply

Copyright 2011 Pearson Education

Selecting Specific Media

Figure 12. 2 - Profiles of Major

Good mass-marketing coverage; low cost per

Flexibility; timeliness; good local market coverage;

High selectivity; low cost; immediacy; interactive

High audience selectivity; flexibility; no ad

High geographic and demographic selectivity;

Good local acceptance; high geographic and

Copyright 2011 Pearson Education

Figure 12. 2 Profiles of Major

High absolute costs; high clutter; fleeting exposure;

Short life; poor reproduction quality; small pass-along

Potentially low impact; the audience controls exposure

Relatively high cost per exposure; junk mail image

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

Little audience selectivity; creative limitations