Chapter 12: Communicating Customer Value: Advertising and Public Relations Flashcards
Identify the tools marketers use to promote and communicate their products to customers.
1) Advertising
2) Personal selling
3) Public relations
4) Direct marketing
5) Sales promotion
Explain integrated marketing communications (IMC).
It is the process by which firms carefully integrate their communication channels together to make all messages go the same way in order to not confuse customers.
Elaborate on push and pull strategies.
Push strategy is the strategy by which companies conduct producer marketing activities to get retailers and wholesalers to buy their products. Then, retailers and wholesalers conduct reseller marketing activities to get consumers to buy their products.
Pull strategy is the strategy by which companies directly conduct producer marketing activities to consumers to get them to seek their products from retailers and wholesalers, who in turn seek their products from the company itself.
Elaborate on advertising, its advantages and disadvantages.
Advertising is used not only by businesses but also by non-profit organizations, professionals, social agencies, and the government.
It reaches masses of geographically dispersed at low cost, can be repeated many times, and viewed as more legitimate. However, it is impersonal and is very costly for some media types.
Explain major advertising decisions.
To create an effective advertising program, firms must
1) Set objectives - a specific TASK with a specific TARGET audience during a specific period of TIME; can be classified by purpose: informative, persuasive (+comparative), reminder
2) Set the budget - affordable method, percentage-of-sales, competitive parity (based on competition), objective-and-task* (better)
3.1) Message decisions - message strategy (identify customer benefits used as appeals; meaningful, believable, distinctive), message execution (choose execution style, tone. format elements)
3.2) Media decisions - decide on reach, frequency, media impact; choose media types and consider the medium’s impact, message effectiveness, and cost; select media vehicle (specific media within each general media type) and consider cost, audience quality, audience engagement, editorial quality; decide timing (follow seasonal, oppose seasonal, same coverage all year) and pattern (continuity, pulsing)
4) Advertising evaluation - measure communication impact, sales and profit impact, return on advertising
Discuss public relations.
They build good relations with publics by obtaining favorable publicity, build up a good corporate image, and handle or head off unfavorable rumors, stories, and events.
They perform functions such as press relations or press agency, product publicity, public affairs, lobbying, investor relations, and developments.
Their role and impact may strongly impact public awareness at a lower cost than advertising and is beginning to play an increasingly important brand-building role.
Define the five promotion mix tools for communicating customer value.
Advertising, personal selling, sales promotion. public relations and direct marketing
Discuss the changing communications landscape and the need for integrated marketing communications.
The communications landscape is changing due to factors such as consumer, marketing strategies, and communication technology. The need for IMC is that it delivers clear message going the same way across the five promotion mix tool platforms.
