Chapter Outline

• Define the five promotion mix tools for

communicating customer value
• Discuss the changing communications
landscape and the need for integrated
marketing communications
• Describe and discuss the major decisions
involved in developing an advertising program
• Explain how companies use public relations to
communicate with their publics
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Promotion mix

• The specific blend of promotion tools

that the company uses to persuasively
communicate customer value and build
customer relationships

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 Five Major Promotion Tools
Paid form of nonpersonal presentation and promotion of ideas,
Advertising goods, or services by an identified sponsor

Short-term incentives to encourage the purchase or sale of a

Sales product or service
promotion
Personal presentation by the firm’s sales force for the purpose of
Personal selling making sales and building customer relationships

Building good relations with the company’s various publics by

obtaining favorable publicity, building up a good corporate image,
Public relations and handling or heading off unfavorable rumors, stories, and events

Direct connections with carefully targeted individual consumers to

Direct both obtain an immediate response and cultivate/develop lasting
marketing customer relationships

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 The New Marketing Communications
Model
• Major factors changing today’s marketing
communications
• Changing consumers (better informed)
• 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
• Companies these days are doing less broadcasting and
more narrowcasting

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Integrated marketing
communications
• Carefully integrating and coordinating
the company’s many communications
channels to deliver a clear, consistent,
and compelling message about the
organization and its products

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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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KOTLER & OPRESNIK)
 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 vs. Pull
Promotion Strategy

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Push strategy

• Sales force and trade promotion are used to push the

product through channels
• Producer promotes the product to channel members
who in turn promote it to final consumers

Pull strategy

• Company spends a lot of money on consumer

advertising and promotion to induce final consumers to
buy the product, creating a demand vacuum that pulls
the product through the channel

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Figure 12.3 – Major Advertising
Decisions

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 Setting Advertising Objectives
• Advertising objective: A specific
communication task to be accomplished with
a specific target audience during a specific
period of time
• Advertising objectives can be classified by
their primary purpose:
• To inform
• To persuade
• To remind

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Informative advertising

• Issued heavily when introducing a new-product category

• Objective is to build primary demand
• Suggest new use, build brand image, communicating customer value

Persuasive advertising

• Becomes more important as competition increases

• Objective is to build selective demand, brand preferences
• Change customer perception, persuasive to buy now

Reminder advertising

• Important for mature products

• Helps to maintain customer relationships and keep consumers
thinking about the product

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 Comparative Advertising
• Some persuasive
advertising becomes
comparative advertising
or attack advertising

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 Setting the Advertising Budget
• Advertising budget: The dollars and other
resources allocated to a product or a company
advertising program
• Methods:
• Affordable method
• Percentage-of-sales method
• Competitive-parity method
• Objective-and-task method

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 Setting the Advertising Budget
• Affordable method: Setting promotion budget
at the level management thinks the company
can afford, it ignores the effects of promotion
on sales and uncertain budget.
• Percentage-of-sales method: Setting
promotion budget at a certain percentage of
current or forecasted sales or as a percentage
of the unit sales price, don’t provide basis for
choosing a specific percentage.
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 Setting the Advertising Budget
• Competitive-parity method: Setting the
promotion budget to match competitors’
outlays, it helps prevent promotion wars &
represent industry wisdom.
• Objective-and task method: Developing the
promotion budget by
 Defining specific objectives
 Determining the tasks that must be performed to achieve
these objectives
 Estimating the costs of performing these tasks
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 Advertising Strategy
• The plan by which
the company
accomplishes its
advertising objectives
• Major elements:
• Creating messages
• Selecting media Breaking through the clutter:
Today’s consumers, armed with
an arsenal of weapons, are
increasingly choosing not to
watch ads

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 Madison & Vine
• The merging of advertising and entertainment to break
through the clutter and create new avenues for reaching
consumers with more engaging messages
• 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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 Message Strategy
• Advertiser must next develop a compelling
creative concept
• Creative concept: Idea that brings the
advertising message strategy to life in a
distinctive and memorable way
• Creative concept guides the choice
of specific appeals to be used in an
advertising campaign

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 Message Strategy
• Advertising appeals should be:
• Meaningful – Pointing out benefits that make the
product more desirable or interesting to
consumers
• Believable – Consumers must believe that the
product or service will deliver the promised
benefits
• Distinctive – Should tell how the product is better
than competing brands

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 Execution Style
The approach, style, tone, words, and format used for executing
an advertising message
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 Features a highly believable or likable source endorsing the
endorsement product

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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, and impact
• Choosing among major media types
• Selecting specific media vehicles
• Choosing media timing

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 Percentage of people in the target
Reach market who are exposed to an ad
campaign during a given period of time

Number of times the average person in

Frequency the target market is exposed to the
message

Media Qualitative value of message exposure

through a given medium
impact

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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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 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 quality
• Good local market coverage • Small pass-along
• Broad acceptability and high audience
believability

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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 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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 Public Relations
• Activities designed to build good relations
with the company’s publics
• Used to promote products, people, places,
ideas, activities, nations, and organizations

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 Functions of a Public Relations
Department
• Press relations or press agency: Creating and placing
newsworthy information in the news media to attract attention.
• Product publicity: Publicizing specific products.
• Public affairs: Building and maintaining national or local
community relations.
• Lobbying: Building and maintaining relations with legislators and
government officials to influence legislation and regulation.
• Investor relations: Maintaining relationships with shareholders.
• Development: PR with donors or members of nonprofit
organizations to gain support.

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 The Role and Impact of PR
• PR has a strong impact on public awareness at
a much lower cost than advertising
• Can be a powerful brand-building tool
• Should work hand in hand with advertising
within an integrated marketing
communications program to help build brands
and customer relationships

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 Major Public Relations Tools
• News
• Special events
• Written materials
• Audiovisual material
• Corporate identity
material
• Public service Papa John’s “Camaro Search”
campaign used traditional PR
activities media plus a host of new social
media

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Looking Ahead to Chapter 13
Personal Selling
and Sales Promotion

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