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CHAPTER 10 - Engaging Customers and Communicating Customer Value and Advertising

Engaging customer service

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33 views21 pages

CHAPTER 10 - Engaging Customers and Communicating Customer Value and Advertising

Engaging customer service

Uploaded by

arifhaikal6865
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Promotion and Advertising Chapter 8

(Engaging Customers and Communicating Customer Value, Advertising,


Public Relations and Sales Promotions)
• Part A: The Promotion Mix

Chapter Outline: • Part B: 1) Advertising, 2) Major


Decisions in Advertising
PROMOTION MIX:
known as marketing communications 01 ADVERTISING
mix that the company uses to
communicate customer value and
build customer relationships
persuasively
02 SALES PROMOTION

Company total 03 PUBLIC RELATIONS


marketing
communication
program consist
of a specific
blend of 04 PERSONAL SELLING

05 DIRECT MARKETING
NATURE OF EACH PROMOTIONAL TOOLS

ADVERTISING Reach Many Buyers, Repeat Message Many Times , Impersonal , Expensive

PERSONAL
Personal Interaction , Relationship Building , Most expensive Promo Tools
SELLING

SALES
Wide Assortment of Tools , Rewards Quick Response , Short Lived
PROMOTION

PUBLIC
Very Believable , Dramatize a Company or Product , Underutilized
RELATIONS

DIRECT
Nonpublic , Immediate , Customized , Interactive
MARKETING
NATURE OF EACH PROMOTIONAL TOOLS
ADVERTISING Reach Many Buyers, Repeat Message Many Times , Impersonal , Expensive
NATURE OF EACH PROMOTIONAL TOOLS
PERSONAL
Personal Interaction , Relationship Building , Most expensive Promo Tools
SELLING
NATURE OF EACH PROMOTIONAL TOOLS
SALES
Wide Assortment of Tools , Rewards Quick Response , Short Lived
PROMOTION
NATURE OF EACH PROMOTIONAL TOOLS
PUBLIC
Very Believable , Dramatize a Company or Product , Underutilized
RELATIONS
NATURE OF EACH PROMOTIONAL TOOLS
DIRECT
Nonpublic , Immediate , Customized , Interactive
MARKETING
Chapter Outline:
Part B: 1) Advertising, 2) Major
Decisions in Advertising
ADVERTISING
▪ Is any paid form of nonpersonal presentation and promotion of ideas, goods or
service by an identified sponsor
▪ To increase their sales, companies must try to steal market share from their
competitors.

▪ McDonald’s, Yum Brands, Burger King, and Wendy’s are stepping up their
campaigns and trying to take market share from each other.
▪ Most hotel chains give responsibility for local advertising to individual hotels,
whereas corporate management is responsible for national and international
advertising.
▪ In some corporate offices, the director of marketing handles advertising.
▪ Large companies commonly use an outside advertising agency because it offers
several advantages.
MAJOR DECISION IN ADVERTISING

1) Setting The Objectives


2) Setting The Advertising Budget
3) Message Decisions
4) Media Decisions
5) Campaign Evaluation
Major Advertising Decision: 1) SETTING THE OBJECTIVES
- An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time.
1) SETTING THE OBJECTIVES: Advertising objectives

▪ INFORMATIVE advertising is used heavily


when introducing a new product category and
when the objective is to build primary
demand.
▪ PERSUASIVE advertising becomes more
important as competition increases and a
company’s objective becomes building
selective demand.
▪ REMINDER advertising is important for
mature products because it keeps consumers
thinking about the product.
Major Advertising Decision:
2) SETTING THE ADVERTISING
BUDGET

▪ Stage in the product life cycle


▪ Competition and clutter
▪ Market share
▪ Advertising frequency
▪ Product differentiation
Major Advertising Decision:
3) MESSAGE DECISIONS
▪ Advertising strategy consists of two major elements:
creating advertising messages and selecting
advertising media.

▪ The decision about which media to use for an ad


campaign—television, newspapers, magazines, cell
phones, a Web site or an online network, or e-mail—
is now sometimes more critical than the creative
elements of the campaign.
3) MESSAGE DECISIONS:
Creating the Advertising Message - a)
Message Strategy

• Plan a message strategy—the general message that will be


communicated to consumers.
• get consumers to think about or react to the product or
company
• identifying customer benefits that can be used as advertising
appeals.
• Advertising appeals:
a) Message should be meaningful, pointing out benefits
that make the product more desirable or interesting to
consumers.
b) Appeals must be believable.
c) Appeals should also be distinctive.
3) MESSAGE DECISIONS:
Creating the Advertising
Message - a) Message Strategy
4) Media Decisions:
Choosing Among Major Media (Media Decision)
Major Advertising Decision:
Major Advertising Decision:
5)3)CAMPAIGN EVALUATION
MESSAGE DECISIONS
▪ Managers of advertising programs should regularly evaluate the communication and sales effects of
advertising.
1) Measuring the Communication Effect - Measuring the communication effect reveals whether an ad is
communicating well.
▪ Copy testing, this process can be performed before or after an ad is printed or broadcast.
▪ There are three major methods of advertising pretesting:
a) direct rating - show how well the ads attract attention and how they affect consumers.
b) portfolio tests - Recall level indicates the extent to which an ad stands out and how well its
message is understood and remembered.
c) Laboratory tests - The tests measure an ad’s attention-getting power but reveal little about its
impact on beliefs, attitudes, or intentions.
▪ On the other hand, there are two popular methods of post testing ads.:
a) recall tests - indicate the ad’s power to be noticed and retained.
b) recognition tests - Recognition scores can be used to assess the ad’s impact in different market
segments and to compare the company’s ads with those of competitors.
2) Measuring the Sales Effect
▪ One way to measure sales effect is to compare past sales with past advertising expenditures.
▪ Another is through experiments.

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