Communicating Customer Value: Advertising and Public Relations

1. Global Edition Communicating Customer Value: Advertising and Public Relations Chapter 12

2. Rest Stop: Previewing the Concepts (p.382) • Define the five promotion mix tools for communicating customer value 定義五種推廣工具 • Discuss the changing communications landscape and the need for integrated marketing communications溝通環境改變與整合性行銷溝通 • Describe and discuss the major decisions involved in developing an advertising program廣告策略 • Explain how companies use public relations to communicate with their publics公共關係

3. First Stop: Microsoft vs. Apple (p.383) • Apple’s “Get a Mac” campaign attacks Microsoft, helps Apple increase market share • Microsoft’s retaliatory “I’m a PC” campaign, followed by the “Laptop Hunters” campaign, strikes a chord with Windows users • Microsoft’s advertising features actual users • Turns around Apple’s categorization of PC users as stodgy and boring

4. The Promotion mix(p.385) • The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships. • 一組特定推廣工具，企業用來溝通顧客價值與建立顧客關係。

5. The Promotion Mix (p.386) Public Relations Sales Promotion Advertising Personal Selling Direct Marketing

6. The Promotion Mix (p.386) • Advertising • Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. • 特定的贊助者用非人員的方式展現或推廣構想、產品與服務 • Sales Promotion • Short-term incentives to encourage the purchase or sale of a product or service. • 給予短期誘因以鼓勵銷售或購買產品或服務

7. The Promotion Mix (p.386) • Public Relations • Building good relations with the company’s various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events. • 透過有利的公開報導、建立良好公司形象與處理或移除不利公司的謠言、傳說與事件，以逹到與公眾建立良好關係的結果

8. The Promotion Mix (p.386) • Personal Selling • Personal presentation by the firm’s sales force for the purpose of making sales and building customer relationships. • 透過公司的銷售團隊以人員呈現的方式來建立顧客關係或促成交易

9. The Promotion Mix (p.386) • Direct Marketing • Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—the use of telephone, mail, fax, e-mail, the Internet, and other tools to communicate directly with specific consumers. • 與審慎選擇的個別顧客進行接觸，以產生立即回應與深耕顧客關係—通常使用電話、信件、電子郵件、網路等，與特定顧客直接溝通

10. The Promotion Mix (p.386) • At the same time, marketing communication goes beyond these specific promotion tools. The product’s design, its price, the shape and color of its package, and the stores that sell it—all communicate something to buyers. Thus, although the promotion mix is the company’s primary communication activity, the entire marketing mix—promotion and product, price, and place—must be coordinated for greatest communication impact.

11. The New Marketing Communications Model (p.385) • Consumers are changing • They are better informed and more communications empowered. • 被動告知主動出擊 Marketing strategies are changing Mass markets have fragmented, leading to a more focused, narrowly defined micromarkets. • Sweeping advances in communications technology • Technologies create new information and communication tools—from • smartphones and iPads to satellite and online social networks…

12. The New Marketing Communications Model (p.385) • Advertisers are now adding a broad selection of more-specialized and highly targeted media to reach smaller customer segments with more-personalized, interactive messages. • The new media range from specialty cable television channels and made-for-the-Web videos to Internet catalogs, e-mail, blogs, mobile phone content, and online social networks. • Companies these days are doing less broadcasting and more narrowcasting

13. The Need for IMC (p.387) • Companies fail to integrate their various communications channels. • The result is a hodgepodge of communications to consumers. • Conflicting messages from different sources can create confusion or blur brand perceptions. • More companies are adopting the concept of Integrated Marketing Communications (IMC).

15. Figure 12.1 – Integrated Marketing Communications

16. Integrated Marketing Communications • Recognize all points where the customer may encounter the company’s brands • Deliver a consistent and positive message at each contact The “HD loves HB” integrated marketing communications campaign uses a rich, well-coordinated blend of promotion elements to successfully deliver Häagen-Dazs’ unique message

17. Shaping the Overall Promotion Mix(p.390) • According to IMC, company must blend the promotion tools carefully into a coordinated promotion mix. • Companies and brands within the same industry differ greatly in the design of their promotion mix. • Mary Kay: personal selling and direct marketing • CoverGirl: consumer advertising • HP: retailer advertising and promotion • Dell: uses only direct marketing

18. Factors that influence promotion mix design (pp. 392-393) • The nature of each promotion tool 推廣工具的特質 • Promotion mix strategies: push or pull 推廣組合策略 • Product type 產品類型 • Market type 市場類型 • B2B vs. B2C • Product life-cycle stage 產品生命週期階段 • Consumers‘ response stage 消費者反應階段 • Promotion budget 推廣預算

19. The nature of promotion tool：Advertising (p.390) • Reaches masses of geographically dispersed buyers at a low cost per exposure. (Super Bowl reaches 111 million Americans.) 接觸面廣 • Enables the seller to repeat a message often 重覆播出 • Consumers tend to view advertised products as more legitimate有廣告有保障 • Can build up long-term image for a product • Can trigger quick sales • Is impersonal, one-way communication 非人的，單向溝通 • Can be very costly for some media types 媒體成本高

20. Involves personal interaction between two or more people. Buyers feel a greater need to listen and respond to personal selling. 二人以上互動 Allows all kind of customer relationships to spring up 建立關係與雙向溝通 Is most effective in building up buyers’ preferences, convictions, and actions. 建立偏好、說服、採取行動最有效 Most expensive promotion tool. 最貴啦 The nature of promotion tool： Personal Selling (p.391)

21. The Nature of Sales Promotion(p.391) • Wide assortment of tools.種類繁多 • Attracts consumer attention. 吸引消費者注意 • Offers strong incentives to purchase 提供購買誘因 • Can be used to dramatize product offers and boost sagging sales. 促銷方案戲劇化、提升銷售 • Invites and rewards quick responses激發與獎勵消費者快速反應 • Effects are short-lived效果短暫 • Not very effective in building long-run brand preference and customer relationships無法建立品牌偏好與顧客關係 • 許多行銷經理最愛此種推廣，但是負面影響更多。 • 史上最成功促銷活動為 7-11 Hello Kitty 吸鐡石贈送案

22. The nature of promotion tool：Public Relations (p.391) • Is very believable. 可信度高 • Reaches many prospects (who avoid salespeople and ads). 接觸廣泛潛在顧客 • Can dramatize a company or product. 戲劇化 • Economical if used with other mix elements. 好好規劃與使用可變成既有效又經濟的工具

23. The nature of promotion tool：Direct Marketing (p.392) • Many forms of direct marketing exist • Direct marketing forms share four primary characteristics: • Less public 非公開 (directed to a specific person) • Immediate 即時性 • Customized 客製化 • Interactive 互動性 • Well suited to highly targeted marketing

24. Push strategy • Sales force (銷售團隊) and trade promotion (中間商推廣)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 (消費者廣告與促銷)to induce (吸引)final consumers to buy the product, creating a demand vacuum (需求吸引力)that pulls the product through the channel.

25. 人員銷售 中間商的促銷 製造商 批發商 零售商 消費者 製造商 批發商 零售商 消費者 Push vs. Pull Promotion Strategy (p.392) 推的策略 (push strategy) 拉的策略 (pull strategy) 廣告及促銷 推廣活動 需求

26. Push vs. Pull Promotion Strategy (p.392)

27. Push：海尼根藉由獎勵通路來深耕通路 • 海尼根啤酒因為單價較高，部分消費者不太輕易嚐試。為了促銷啤酒，海尼根說服夜店，給予較高的利潤，並聘請「Promotion Girls」到Pub裡對顧客推廣，會到Pub的客人通常願意支付較高的價格以彰顯自己的與眾不同。同樣一罐啤酒在Pub的價格雖比便利商店多出四倍，但海尼根為Pub通路設計背包、帽子等專屬贈品，不但刺激購買意願也拓展了品牌知名度。 • 由於台灣啤酒市場有四成是透過傳統雜貨店賣，於是在2003年夏天，海尼根推動「綠光計畫」，藉由獎勵通路商來進攻傳統雜貨店的啤酒市場。海尼根發動內部員工協助全國三百個店家一起參與陳列競賽，由品牌部門評分，分區選出第一名給予獎金。評分標準包括陳列、海報是否對位、冰箱裡的海尼根有沒有放在黃金位置等，結果海尼根的銷量比去年同期增加20%。

28. Figure 12.3 – Major Advertising Decisions Measurement Mission Money Message Media

29. Setting Advertising Objectives (p.394) • An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. • 針對特定目標在特定時間要逹成之特定溝通任務 • Should be based on STDP and Marketing Mix.

30. Setting Advertising Objectives • Help moving consumers through the buying process • Building or strengthening long-term customer relationships • 廣告的最終目的：「購買」「建立關係」 • Advertising objectives can be classified by their primary purpose: • Inform 告知 • Persuade/Compare 說服/比較 • Remind 提醒

31. Setting Advertising Objectives • Inform：新產品建立主需求 • Introducing a new product category • To build primary demand • Persuade/Compare：建立選擇性需求，偏好 • Becomes more important when competition increases. • To build selective demand • Comparative ads or attack ads are used • Remind：維持知名度與關係，提醒購買 • Is important for mature products • To maintain customer relationships and keep consumers thinking about the product

32. Setting Advertising Objectives • Inform：每朝健康黑烏龍—去膽固醇、EXTRA香甜水蜜桃 • Telling the market about a new product. • Suggesting new uses for a product. • Explaining how the product works. • Reducing fears or correcting false impressions. • Persuade/Compare：維力沙茶醬PK牛頭牌沙茶醬 • Building brand preference. • Encouraging switching ore persuading customer to purchase now. • Changing customer’s perception of product attributes. • Comparing brand with other brands. • Remind：初一與十五要買大茂黑瓜 • Keeping it in customer's mind during off seasons. • Maintaining its top-of-mind awareness. • Reminding consumer that the product may be needed. • Reminding consumer where to buy it.

33. Setting Advertising Objectives • Inform：將需要轉為慾望，或是刺激對某種新產品的需求。 • Nokia手機、NISSAN新車、威寶3G、變頻冷氣、LG洗衣機。 • Persuade：刺激購買或引起行動、品牌轉換或改變形象。 • 王力宏波卡樂事、愛之味579蔬果汁、信義房屋 • Compare：直接或間接比較以建立品牌差異 • 廚房穏潔、大雕藥酒(嘔吐篇) 、烤米片 • 比較性廣告必須立於三點：１.資訊充分揭露 2.比較基礎一致 3.即使不指名只要是讓人覺得在指名某廠商也算構成 • Remind：維持品牌印象、提醒需求。 • 可口可樂、白蘭氏雞精(金城武篇) 、白蘭氏雞精(魔術方塊篇) 、白蘭氏雞精(搶劫篇) 。 • 其他目標設定—根據response stages：awareness、knowledge 、liking 、preference 、conviction 、purchase

34. Comparative Advertising Progresso makes side-by-side comparisons of its soup versus Campbell’s, inviting consumers to “Enjoy a better soup…with a more adult taste.”

35. 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

36. 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

37. Setting the Advertising Budget • Affordable method: Setting promotion budget at the level management thinks the company can afford • 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

38. Setting the Advertising Budget • Competitive-parity method: Setting the promotion budget to match competitors’ outlays • 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

39. 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

40. Message Strategy • Advertiser must next develop a compelling creative concept • Creative concept: Compelling big 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

41. 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

42. Execution Style • The approach, style, tone, words, and format used for executing an advertising message Execution styles: This ad creates a nostalgic mood around the product. “So I baked her the cookies she’s loved since she was little”

43. Types of Execution Styles

44. 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 30-second videos. The results were “positively remarkable”

45. Marketing at Work • PepsiCo’s Doritos brand has been very successful with user-generated advertising Consumer-generated messages: Last year, three Doritos “Crash the Super Bowl” ads finished in USA Today’s top five. This “Pug goes for the chips” ad tied for first place.

46. 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

48. Choosing Among Major Media Types • Choose media that effectively and efficiently present the message to customers • Consider each medium’s impact, effectiveness, and cost 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

49. Figure 12. 2 - Profiles of Major Media Types

50. 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