Chapter 13 Notes For Students

Part 4: Deliver and Communicate the Value Proposition
Chapter 13
Promotion I: Advertising and Sales Promotion
I. CHAPTER OVERVIEW
Marketing communication can take many forms from creative slogans printed on t-shirts, to
chalk art printed on university sidewalks, to newspaper advertisements. The list can go on and on
and is limited only by imagination. Chapter 13 focuses on the process of integrated marketing
communication designed to influence target markets and create successful marketing. Students
are introduced to the communication model. Many students enrolled in this course probably
believed that the entire term would be spent on advertising—believing that marketing
communications (or promotions) and advertising is the same thing. In this chapter, the difference
becomes apparent. This chapter teaches the basics of advertising and consumer sales promotion
Students learn about creating advertising campaigns and the basics of consumer sales promotion.
This information, combined with the remaining elements of promotion, discussed in Chapter 14,
give students a great foundation for truly understanding how an integrated marketing
communication process works.
II. CHAPTER OBJECTIVES

1. Understand the communication process and the traditional promotion mix
2. Describe the steps in traditional and multichannel promotional planning.
3. Tell what advertising is, describe the major types of advertising, discuss some of the
major criticisms of advertising, and describe the process of developing an advertising
campaign and how marketers evaluate advertising.
4. Explain what sales promotion is and describe the different types of consumer and B2B
sales promotion activities.
III. CHAPTER OUTLINE

►MARKETING MOMENT INTRODUCTION
Recall a “negative moment” for a company (such as the finger in chili for Wendy’s [later proved
false] or Martha Stewart and K-Mart). How might this negative publicity impact a consumer’s
perception of a company?
p. 397 Real People, Real Choices—Here’s My Problem at www.brownstein
Brownstein Group Brand Communication group.com/
In the first quarter of 2010, one of Marc’s clients (a large
consumer communications company) was under siege. Its primary
competitor was relentlessly attacking the company with clever
advertising in major markets across the U.S.A. that took direct
aim at a new product the client had launched. Marc’s agency took
exception to these unfair attacks and his account team proactively
Copyright © 2016 Pearson Education, Inc.

Chapter 13: Promotion I: Advertising and Sales Promotion
approached the client with three possible responses. Each of these

solutions was based on a strategic direction the agency
formulated. The group proposed a multi-pronged counterattack on
multiple platforms including TV spots, outdoor billboards, print
ads, online banner ads and a landing page for the client’s website.
The decision to develop these options was a risky one since the
client had not requested the work and there was no budget
provided to lay out these solutions. If the client did not approve
the work, Marc’s agency would have invested over $200,000
worth of services for which it would not be compensated. Still,
Marc felt the competitor’s campaign demanded an aggressive
response. He created three integrated teams within the agency;
each included creatives, PR specialists, strategists and account
managers. He gave each team 24 hours to propose an idea. Each
team then presented its idea:
1. Clearly, define the new product.
2. Fire back.
3. Launch a guerrilla marketing strategy that attacked the
rival more subtly than a major ad campaign.
The vignette ends by asking the student which option he/she

would choose.
 Marc selected option #1.
p. 398 1. COMMUNICATION MODELS IN A WEB 2.0 WORLD
Promotion is the coordination of marketing communication
efforts to influence attitudes or behavior. This function is the last
of the famous four Ps of the marketing mix, and it plays a vital
role. Of course, virtually everything an organization says and does
is a form of marketing communication
1.1 Marketing communication performs one or more of four roles:

 It informs consumers about new goods and services.
 It reminds consumers to continue using certain brands.
 It persuades consumers to choose one brand over
others.
 It builds relationships with customers
p. 398 Integrated marketing communication (IMC) is the process that

marketers use “to plan, develop, execute, and evaluate
coordinated, measurable, persuasive brand communication
programs over time to targeted audiences
To achieve marketing communication goals, marketers use a Figure 13.1

p. 399 multichannel promotional strategy where they combine Three Models of
traditional marketing communications (advertising, sales Marketing
promotion, public relations, and direct marketing) activities with Communication

social media and other online buzz-building activities.
p. 400 1.2 Models of Marketing Communication

 The traditional communication model, is a “one-to-many”
view in which a marketer sends messages to many
consumers through advertising, including mass media;
out-of-home, such as billboards; and Internet advertising,
 The importance of the updated “many-to-many” model of

marketing communication has increased because of social
media and its use in word-of-mouth communication,
whereby consumers look to each other for information and
recommendations.
 Marketers also talk one to one with consumers and

business customers.
►Marketing Moment In-Class Activity

Identify examples of ads that serve a reminder purpose (e.g.,
Coke, Pepsi, Got Milk? etc.). Do you see a tendency to use
reminder advertising in a particular stage of the product life cycle
(i.e., maturity)?
p. 400 1.3 The Communication Model Figure 13.2

Promotional strategies can succeed only if customers understand Communication
what we’re trying to say. The communication model is a good Model
way to understand the basics of how any kind of message works.
In this perspective, a source transmits a message through some
medium to a receiver who (we hope) listens and understands the
message.
p. 401 1.3.1 The Source Encodes

A person or organization, the source has an idea to communicate Exhibit 13. 1
to a receiver. Encoding means we can translate our idea into Campbell’s
different forms to convey the desired meaning.
p. 401 1.3.2 The Message Exhibit 13. 2

The message is the actual content of that physically perceivable V8
form of communication that goes from the source to a receiver.
p. 401 1.3.3 The Medium

No matter how the source encodes the message, it must then
transmit that message via a medium, a communication vehicle
that reaches members of a target audience.

p. 401 1.3.4 The Receiver Decodes

A receiver is there to get the message. Decoding is the process
whereby a receiver assigns meaning to a message; that is, she
translates the message she sees or hears back into an idea that
makes sense to her.
p. 402 1.3.5 Noise
The communication model also acknowledges that noise—
anything that interferes with effective communication—can block Exhibit 13. 3
messages. To complete the communication loop, the source gets Clorox
feedback from receivers.
Activity: As you were going through your day you were exposed
to many forms of marketing communication. However, noise
probably interfered with most of the exposures. List five different
instances where noise interrupted your ability to decode a
message. Explain what, if anything, a marketer could have done
to help limit some of the noise.
Exhibit 13. 4
p. 402- 1.4 The Traditional Promotion Mix Gillette
403 Marketers use the term promotion mix to refer to the
communication elements that the marketer controls. Table 13.1 A
• Advertising Comparison of
• Sales promotion Elements of the
• Public relations Traditional
• Personal selling Promotion Mix
• Direct marketing
The challenge is to be sure that the promotion mix works in Figure 13.3
harmony with the overall marketing mix to combine elements of Control
promotion with place, price, and product to position the firm’s Continuum
offering in people’s minds.
Marketers have a lot more control over some kinds of marketing

communication messages than they do others. As Figure 13.3
shows, mass-media advertising and sales promotion are at one
end of the continuum, where the marketer has total control over
the message she delivers. At the other end is word-of-mouth
(WOM) communication, where everyday people rather than the
company run the show. WOM is a vitally important component of
the brand attitudes consumers’ form and of their decisions about
what and what not to buy. Sandwiched between the ends we find
personal selling and direct marketing, where marketers have
some but not total control over the message they deliver, and
public relations, where marketers have even less control.

1.4.1 Mass Communication: The One-to-Many Model Exhibit 13. 5

p. 404 Mass communications elements of the promotion mix include McDonald’s
messages intended to reach many prospective customers at the Player Escort
same time. Program
Advertising is, for many, the most familiar and visible element of
the promotion mix. It is non-personal communication from an
identified sponsor using the mass media. The most important
advantage of advertising is that it reaches large numbers of
consumers at one time.
Consumer sales promotion includes programs such as contests,

coupons, or other incentives that marketers design to build
interest in or encourage purchase of a product during a specified
period. Unlike other forms of promotion, sales promotion intends
to stimulate immediate action (often in the form of a purchase)
rather than build long-term loyalty.
Public relations describes a variety of communication activities

that seek to create and maintain a positive image of an
organization and its products among various publics, including
customers, government officials, and shareholders.
1.4.2 Personal Communication: One-to-One Model

p. 404 Sometimes marketers want to communicate with consumers on a
personal, one-on-one level. The immediate way for a marketer to
make contact with customers is simply to tell them how
wonderful the product is. This is part of the personal selling
element of the promotion mix mentioned previously. It is the
direct interaction between a company representative and a
customer. The interaction can occur in person, by phone, or even
over an interactive computer link.
Salespeople are a valuable source of communication because

customers can ask questions and the salesperson can immediately
address objections and describe product benefits. Marketers also
use direct mail, telemarketing, and other direct marketing
activities to create personal appeals. Like personal selling, direct
marketing provides direct communication with a consumer or
business customer.
3. 2. OVERVIEW OF PROMOTIONAL PLANNING Figure 13.4

p. 404- Just as with any other strategic decision-making process, the Steps to Develop
405 development of this plan includes several steps the Promotional
Plan

p. 405 2.1 Step 1: Identify the Target Audience(s)

An important part of overall marketing planning is to identify the
target audience(s). Remember, IMC marketers recognize that we
must communicate with a variety of stakeholders who influence
the target market. Of course, the intended customer is the most
important target audience and the one that marketers focus on the
most.
p. 405 2.2 Step 2: Establish the Communication Objectives

The whole point of communicating with customers and
prospective customers is to let them know in a timely and
affordable way that the organization has a product to meet their
needs. In most cases, it takes a series of messages that move the
consumer through several stages.
The marketer “pushes” the consumer through a series of steps, or Figure 13.5
a hierarchy of effects, from initial awareness of a product to The Hierarchy of
brand loyalty. The task of moving the consumer up the hierarchy Effects
becomes more difficult at each step. The steps are as follows:
 Create awareness
 Inform the market
 Create desire
 Encourage purchase and trial
● Build loyalty

Ask students to imagine they are responsible for launching new
fitness water. Then ask how they would design am IMC plan to
take a potential customer through each stage of the hierarchy of
effects (e.g., to create awareness, sponsor a tennis match and
show tennis players drinking the water, etc.).
p. 407 2.3 Step 3: Determine and Allocate the Marketing

Communication Budget
While setting a budget for marketing communication might seem
easy—you just calculate how much you need to accomplish your
objectives—in reality it’s not that simple. We need to make three
distinct decisions to set a budget:
p. 407 2.3.1 Determine the Total Promotion Budget

Most firms rely on two budgeting techniques: top-down and
bottom-up. Top-down budgeting techniques require top
management to establish the overall amount that the organization
allocates for promotion activities. The most common top-down
technique is the percentage-of-sales method in which the

promotion budget is based on last year’s sales or on estimates for

the present year’s sales. The percentage may be an industry
average provided by trade associations that collect objective
information on behalf of member companies. The advantage of
this method is that it ties spending on promotion to sales and
profits. Unfortunately, this method can imply that sales cause
promotional spending rather than viewing sales as the outcome of
promotional efforts.
The competitive-parity method is a fancy way of saying “keep

up with the Joneses.” This method assumes that the same dollars
spent on promotion by two different firms will yield the same
results, but spending a lot of money does not guarantee a
successful promotion. Firms certainly need to monitor their
competitors’ promotion activities, but they must combine this
information with their own objectives and capacities.
The problem with top-down techniques is that budget decisions

are based more on established practices than on promotion
objectives. Another approach is to begin at the beginning: identify
promotion goals and allocate enough money to accomplish them.
That is what bottom-up budgeting techniques attempt.
This bottom-up logic is at the heart of the objective-task method,

which is gaining in popularity. Using this approach, the firm first
defines the specific communication goals it hopes to achieve,
such as increasing by 20 percent the number of consumers who
are aware of the brand. It then tries to figure out what kind of
promotional efforts—how much advertising, sales promotion,
buzz marketing etc. -- it will take to meet that goal.
p. 408 2.3.2 Decide on a Push or a Pull Strategy

A push strategy means that the company wants to move its
products by convincing channel members to offer them and entice
their customers to select these items – it pushes them through the
channel. This approach assumes that if consumers see the product
on store shelves, they will be enticed to make a trial purchase. In
this case, promotion efforts will “push” the products from
producer to consumers by focusing on personal selling, trade
advertising, and trade sales promotion activities such as exhibits
at trade shows.
In contrast, a company that relies on a pull strategy is counting

on consumers to demand its products. This popularity will then
convince retailers to respond by stocking these items. In this case,

efforts focus on media advertising and consumer sales promotion

to stimulate interest among end consumers who will “pull” the
product onto store shelves and then into their shopping carts.
In contrast, a company that relies on a pull strategy is counting

on consumers to demand its products. This popularity will then
convince retailers to respond by stocking these items. In this case,
efforts focus on media advertising and consumer sales promotion
to stimulate interest among end consumers who will “pull” the
product onto store shelves and then into their shopping carts.

Ask students to think about how the pharmaceutical industry
might implement a push or a pull strategy. What would each
strategy “look” like (e.g., a “push” sells to doctors while a “pull”
advertises to customers)? How would the promotion mix differ
using the two strategies?
p. 408 2.3.3 Allocate the Budget to a Specific Promotion Mix

Once the organization decides how much to spend on promotion
and whether to use a push or a pull strategy, it must divide its
budget among the elements in the promotion mix. Although
advertising used to get the lion’s share of the promotion budget,
today sales promotion and digital marketing such as buzz building
and the use of social media we talked about earlier in this chapter
are playing a bigger role in marketing strategies.
p. 408 2.4 Step 4: Design the Promotion Mix

Designing the promotion mix is the most complicated step in
marketing communication planning. It includes determining the
specific communication tools that will be used, what message is
to be communicated, and the communication channel(s) to be
employed.
The message should ideally accomplish four objectives (though a

single message can rarely do all of these): It should get attention,
hold interest, create desire, and produce action. These
communication goals are known as the AIDA model.
Activity: Illustrate how the AIDA model works using an

example. Explain your answer.
p. 409 2.5 Step 5: Evaluate the Effectiveness of the Communication Exhibit 13. 6
Program Land Rover
The final step to manage marketing communications is to decide
whether the plan is working. It is not so easy. There are many

random factors in the marketing environment.
As a rule, various types of sales promotion are the easiest to

evaluate because they occur over a fixed, usually short period,
making it easier to link to sales volume. Advertising researchers
measure brand awareness, recall of product benefits
communicated through advertising and even the image of the
brand before and after an advertising campaign. The firm can
analyze and compare the performance of salespeople in different
territories, although again it is difficult to rule out other factors
that make one salesperson more effective than another does.
Public relations activities are more difficult to assess because their
objectives relate more often to image building than sales volume.
p. 409 2.6 Multi-channel Promotional Strategies

Many marketers opt for multi-channel promotional strategies
where they combine traditional advertising, sales promotion and
public relations activities with online buzz building activities
Multi-channel strategies boost the effectiveness of either online or
offline strategies used alone. In addition, multi-channel strategies
allow marketers to repeat their messages across various channels;
this lets them strengthen brand awareness and it provides more
opportunities to convert customers.
p. 410 3 ADVERTISING
Advertising is so much a part of marketing that many people think
of the two as the same thing. Remember, product, price, and
distribution strategies are just as important as marketing
communications.
Advertising is non-personal communication an identified sponsor

pays for that uses mass media to persuade or inform an audience.
Authenticated streaming is a term that describes using your

Internet-enabled device, like a tablet or smart phone, to stream
content from your cable or satellite provider
p. 410- 3.1 Types of Advertising Figure 13.6

411 The advertisements an organization runs can take many forms. Types of
Advertising
p. 411 3.1.1 Product Advertising
With product advertising, the message focuses on a specific
good or service. Most of the advertising we see or hear is product
advertising.
p. 411 3.1.2 Institutional Advertising

Institutional advertising promotes the activities, personality, or

point of view of an organization or company. Corporate
advertising promotes the company as a whole instead of the
firm’s individual products.
Some institutional messages state an organization’s position on an

issue to sway public opinion, a strategy we call advocacy
advertising.
Public service advertisements (PSAs) are advertisements the

media runs free of charge. These messages promote not-for-profit
organizations that serve society in some way, or they champion an
issue such as increasing literacy or discouraging drunk driving.
p. 411 3.1.3 Retail and Local Advertising

Both major retailers and small, local businesses advertise to
encourage customers to shop at a specific store or use a local
service.
p. 411 3.2 Who Creates Advertising?
An advertising campaign is a coordinated, comprehensive plan
that carries out promotion objectives and results in a series of
advertisements placed in various media over a period. Although a
campaign may be based around a single ad idea, most use
multiple messages with all ads in the campaign having the same
look-and-feel.
p. 412 Although some firms create their own advertising in-house, in

many cases several specialized companies work together to
develop an advertising campaign. Typically, the firm retains one
or more outside advertising agencies to oversee this process. A
limited-service agency provides one or more specialized
services, such as media buying or creative development. In
contrast, a full-service agency supplies most or all of the services
a campaign requires, including research, creation of ad copy and
art, media selection, and production of the final messages.
Big or small, an advertising agency hires a range of specialists to

craft a message and make the communication concept a reality:
Account management: The account executive, or account

manager, is the “soul” of the operation. This person supervises the
day-to-day activities on the account, and is the primary liaison
between the agency and the client. The account executive has to
ensure that the client is happy while he verifies that people within
the agency execute the desired strategy. The account planner
combines research and account strategy to act as the voice of the

consumer in creating effective advertising.
Creative services: Creatives are the “heart” of the

communication effort. These people actually dream up and
produce the ads.
Research and marketing services: Researchers are the “brains”

of the campaign. They collect and analyze information that will
help account executives develop a sensible strategy.
Media planning: The media planner is the “legs” of the www.youtube.co

campaign. He helps to determine which communication vehicles m/watch?v=hKo
are the most effective, and recommends the most efficient means B0MHVBvM
to deliver the ad by deciding where, when, and how often it will
appear.
p. 412 3.3 User-Generated Advertising Content
The latest promotional craze is to let your customers actually

create your advertising for you. User-Generated Content
(UGC), also known as Consumer-generated media (CGM),
includes the millions of online consumer comments, opinions,
advice, consumer-to-consumer discussions, reviews, photos,
images, videos, podcasts and webcasts and product-related stories
available to other consumers through digital technology.
Marketers that embrace this strategy understand that it is OK to
let people have fun with their products.
Some marketers encourage consumers to contribute their own Do-

It-Yourself (DIY) ads.
p. 413 Crowdsourcing is a practice in which firms outsource marketing

activities (such as selecting an ad) to a community of users, i.e., a
crowd. The idea behind crowdsourcing is that if you want to
know what consumers think and what they like, the most logical
thing to do is to ask them.
p. 413 3.4 Ethical Issues in Advertising

 Advertising is manipulative
 Advertising is deceptive and untruthful-- in
addition to fining firms for deceptive advertising,
the FTC also has the power to require firms to run
corrective advertising; messages that clarify or
qualify previous claims. Other ads, although not
illegal, may create a biased impression of products
when they use puffery—claims of superiority that

neither sponsors nor critics of the ads can prove are

true or untrue. Many consumers today are
p. 414 concerned about greenwashing, a practice in
which companies promote their products as
environmentally friendly when in truth the brand
provides little ecological benefit.
 Advertising is offensive and in bad taste
 Advertising creates and perpetuates stereotypes
 Advertising causes people to buy things they don’t
really need
p. 414 3.5. Develop the Advertising Campaign Figure 13.7
The following is a description of the steps in creating an Steps to Develop
advertising campaign: an Advertising
Campaign
p. 414- 3.5.1 Step 1: Understand the Target Audience
415 The best way to communicate with an audience is to understand The Cutting
as much as possible about them and what turns them on and off. Edge
Marketers often identify the target audience for an advertising Pay-Per-Gaze
campaign from research.
p. 415 3.5.2 Step 2: Establish Message and Budget Objectives Exhibit 13. 7
Advertising objectives should be consistent with the overall SciFi Channel
communications plan. Advertising objectives will generally
include objectives for both the message and the budget.
p. 415- 3.5.3 Set Message Objectives Exhibit 13. 8

416 Advertising can inform, persuade, and remind. Harley-Davidson
p. 415 3.5.4 Set Budget Objectives

Advertising is expensive. An objective of many firms is to
allocate a percentage of the overall communication budget to
advertising.
Use Websites Here:
www.abercrombie.com
www.hydroxycut.com
Examples of Sex Appeal
p. 416 3.5.5 Step 3: Create the Ads Figure 13.8
The creation of the advertising begins when an agency formulates Creative
a creative strategy, which gives the advertising "creatives" (art Elements of
directors, copywriters, photographers and others) the direction Advertising
and inspiration they need to begin the creative process. The
strategy is summarized in a written document known as
a creative brief; a rough blueprint that guides but does not
restrict the creative process. It provides only the most relevant
information and insights about the marketing situation, the
advertising objective, the competition, the advertising target and,
most importantly, the message that the advertising must deliver.

p. 416 3.5.5.1 Advertising Appeals
An advertising appeal is the central idea of the ad and the basis Exhibit 13. 9
of the advertising messages. It is the approach used to influence Cybermentors
the consumer. Informational appeals are based on a unique
selling proposition (USP) that gives consumers a clear, single-
minded reason why the product is better at solving a problem.
p. 417 Generally, we think of appeals as informational or emotional. Of

course, not all ads fit into these two appeal categories. Well-
established brands often use reminder advertising just to keep
their name in people’s minds or be sure that consumers
repurchase the product as necessary. Sometimes advertisers use
teaser or mystery ads to generate curiosity and interest in a to-
be-introduced product.
p. 417 3.3.2 Execution Formats Exhibit 13.10

Fresh Step
Execution format describes the basic structure of the message.
Some of the more common formats, sometimes used in
combination, include:
 Comparison: A comparative advertisement explicitly
names one or more competitors.
 Demonstration: The ad shows a product “in action” to
prove that it performs as claimed: “It slices, it dices!”
 Storytelling: Modern storytelling commercials are like
30-second movies with a plots that involve the product in
a peripheral way.
 Testimonial: A celebrity, an expert, or a “man in the
street” states the product’s effectiveness. The use of
celebrity endorser is a common but expensive strategy.
 Slice of life: A slice-of-life format presents a (dramatized)
scene from everyday life.
 Lifestyle: A lifestyle format shows a person or persons
attractive to the target market in an appealing setting. The
advertised product is “part of the scene,” implying that the
person who buys it will attain the lifestyle.
p. 418- 3.3.3 Tonality
419 Tonality refers to the mood or attitude the message conveys. Exhibit 13. 11
Some common tonalities include: King of Shaves
 Straightforward: Straightforward ads simply present the
information to the audience in a clear manner.
 Humor: Humorous, witty or outrageous ads can be an

effective way to break through advertising clutter.

 Dramatic: A dramatization, like a play, presents a
problem and a solution in a manner that is often exciting
and suspenseful—a difficult challenge in 30 or 60
seconds.
 Romantic: Ads that present a romantic situation can be
especially effective at getting consumers’ attention and at
selling products people associate with dating and mating.
 Sexy: Some ads appear to sell sex rather than products.
Sex appeal ads are more likely to be effective when there
is a connection between the product and sex (or at least
romance).
 Apprehension/Fear: Some ads highlight the negative
consequences of not using a product. In general, fear
appeals can be successful if the audience perceives there
to be an appropriate level of intensity in the fear appeal.
p. 419 3.3.4 Creative Tactics and Techniques

 Animation and Art: Not all ads are executed with film or
photography.
 Celebrities
 Music, jingles and slogans. Jingles are original words
and music written specifically for advertising executions.
Slogans link the brand to a simple linguistic device that is
memorable (jingles do the same but set the slogan to
music).
Activity: Describe some of the different advertising appeals used

in campaigns.
Ask students to recall an advertisement that used sex appeal. Can students also recall the product
category and brand? Have students notice how many could recall the sex appeal but may not be
able to recall the brand.
Use Website Here:
www.ihop.com
IHOP slogan–come hungry, leave happy
p. 419 3.4 Step 4: Pretest What the Ads Will Say

Advertisers try to minimize mistakes by getting reactions to ad
messages before they actually place them. Much of this pre-
testing, the research that goes on in the early stages of a
campaign, centers on gathering basic information that will help
planners be sure they’ve accurately defined the product’s market,
consumers, and competitors.
p. 419 3.5 Step 5: Choose the Media Type(s) and Media Schedule
Media planning is a problem-solving process for getting a

message to a target audience in the most effective way. Planning

decisions include audience selection and where, when, and how
frequent the exposure should be. Thus, the first task for a media
planner is to find out when and where people in the target market
are most likely to be exposed to the communication.
There is no such thing as one perfect medium for advertising.

p. 420 3.5.1 Where to Say It: Traditional Mass Media
The following is a list of the major categories of media. Table
13.2 summarizes some of the pros and cons of each type.
 Television
 Radio
 Newspapers
 Magazines
 Directories
 Out-of-home media
 Internet websites
 Place-based media
 Branded entertainment
 Advergaming
 Mobile Phones
p. 420- 3.5.2 Where to Say It: Digital Media Table 13.2
421 The term digital media refers to any media that are digital rather Pros and Cons of
than analog. The more popular types of digital media advertisers Media Vehicles
use today include websites, mobile or cellular phones, and digital
video such as YouTube.
Website advertising: Online advertising offers several advantages

over other media platforms. First, the Internet provides new ways
to finely target customers. Web user registrations and cookies
allow sites to track user preferences and deliver ads based on
previous Internet behavior. In addition, because the Website can
track how many times an ad is “clicked,” advertisers can measure
in real time how people respond to specific online messages.
p. 423 The following is a description of forms of Internet advertising:
 Banners, rectangular graphics at the top or bottom of

web pages, were the first form of web advertising.
 Buttons are small banner-type advertisements that a
company can place anywhere on a page. Exhibit 13.12
 A pop-up ad is an advertisement that appears on the Alaska Airlines
screen while a web page loads or after it has loaded. Photo
 Search engines and directory listings are ways for
people to find web pages of interest to them. A web

search engine is a program that searches for

documents with specified keywords. Unlike search
engines, a web directory does not display lists of web
pages based on key words but instead lists sites by
categories and subcategories.
 E-mail advertising that transmits messages to very
large numbers of inboxes simultaneously is one of the
easiest ways to communicate with consumers – it is
the same price whether you send ten messages or ten
thousand. One downside to this platform is the
explosion of spam. The industry defines this practice
as sending unsolicited e-mail to five or more people
not personally known to the sender. Many websites
that offer e-mail give surfers the opportunity to refuse
unsolicited e-mail via junk e-mail blockers. This
permission marketing strategy gives the consumer
the power to opt in or opt out.
p. 424 ►ETHICS CHECK Ripped from the

Is it ethical for marketers to pay for links on websites in order to Headlines
obtain higher rankings on search engines? Ethical/Sustainab
le Decisions in
the Real World
p. 424 3.5.3 Mobile Advertising: The Mobile Marketing Association
defines mobile advertising as “a form of advertising that is
communicated to the consumer via a handset.
3.5.4 Video Sharing: Check It Out on YouTube

p. 424 Video sharing describes the strategy of uploading video
recordings or vlogs (pronounced vee-logs) to Internet sites such as
YouTube so that thousands or even millions of other Internet
users can check them out. For marketers, YouTube provides vast
opportunities to build relationships with consumers.
Augmented reality (AR) is a form of technology where a view of

a real-world environment joins a layer of virtual computer-
generated imagery to create a mixed reality.
3.5.5 Where to Say It: Branded Entertainment

p. 425 As we noted earlier, more and more marketers rely on paid
product placements in TV shows and movies to grab the attention
of consumers who tune out traditional ad messages as fast as they
see them. These placements are an important form of branded
entertainment; a strategy where marketers integrate products into
all sorts of venues including movies, television shows,

videogames, novels and even retail settings. Beyond movies and

television shows, what better way to promote to the video
generation than through brand placements in video games? The
industry calls this technique advergaming. Native advertising
has marketing material that mimics or resembles the content of
the website that it is posted on
3.5.6 Where to Say It: Support Media

p. 424 Support media reach people who may not have been reached by
mass media advertising and these platforms support the messages
traditional media delivers.
 Directories
 Out-of-home media. In recent years, outdoor advertising
has pushed the technology envelope with digital signage
that enables the source to change the message at will.
 Place-based media
 RFID technology (radio frequency identification)
p. 426 3.5.7 When and How Often to Say It: Media Scheduling Figure 13.9
After she chooses the advertising media, the planner then creates Media Schedule
a media schedule that specifies the exact media the campaign for a Video
will use as well as when and how often the message should Game
appear. The media schedule outlines the planner’s best estimate of
which media will be most effective to attain the advertising
objective(s) and which specific media vehicles will do the most
effective job.
►METRICS MOMENT
Media planners use a number of quantitative factors to develop
the media schedule.
 Reach is the percentage of the target market that will be
exposed to the media vehicle at least once during a given
period of time, usually four weeks
 Frequency is simply the average number of times that an
period of time, usually four weeks
 Frequency is simply the average number of times that an
individual or a household will be exposed to the message.
 Gross rating points (GRPs) are a measure of the quantity
of media included in the media plan.
 To compare the relative cost-effectiveness of different
media, planners use cost per thousand CPM)., which
reflects the cost to deliver a message to 1,000 people
.Applying the Metrics
You have a choice of commercials during NCIS or ads in the Wall
Street Journal. NCIS reaches 30 million members of the target
audience, while WSJ reaches 15 million members. CBS is quoting

you $500,000 per 30-second spot; WSJ charges $200,000 for a

full-page four-color ad.
 Calculate the CPM for each option.
 Which one is the better financial deal?
A continuous schedule maintains a steady stream of advertising

throughout the year. This is most appropriate for products that we
buy on a regular basis.
A pulsing schedule varies the amount of advertising throughout
the year based on when the product is likely to be in demand.
Flighting is an extreme form of pulsing in which advertising
appears in short, intense bursts alternating with periods of little to
no activity. It can produce as much brand awareness as a steady
dose of advertising at a much lower cost if the messages from the
previous flight were noticed and made an impact.
p. 427 3.6 Step 6: Evaluate The Advertising

With so many messages competing for the attention of frazzled
customers, it is especially important for firms to evaluate their
efforts to increase the impact of their messages.
p. 428 Post-testing means conducting research on consumers’ responses Exhibit 13. 13

to advertising messages they have seen or heard as opposed to Potato Goodness
pre-testing, which as we have seen collects reactions to messages
before they are actually placed in “the real world.”
Unaided recall tests by telephone survey or personal interview

whether a person remembers seeing an ad during a specified
period without giving the person the name of the brand.
An aided recall test uses the name of the brand and sometimes
other clues to prompt answers.
Attitudinal measures probe a bit more deeply by testing

consumers’ beliefs or feelings about a product before and after
they are exposed to messages about it.
p. 428- 4. SALES PROMOTION Table 13.3
429 Sales promotions are programs that marketers design to build Consumer Sales
interest in or encourage purchase of a good or service during a Promotion
specified time. Marketers today place an increasing amount of Techniques: A
their total marketing communication budget into sales promotion Sampler
due to growth of channels power and declining brand loyalty.
Marketers target sales promotion activities either to ultimate
consumers or to members of the channel such as retailers that sell
their products. Thus, we divide sales promotion into two major

categories: consumer-oriented sales promotion and trade-oriented

sales promotion.
p. 429 4.1 Sales Promotion Directed toward Consumers
For consumer sales promotion, the major reason for this is that
most promotions temporarily change the price/value relationships.
p. 429- 4.2.1 Price-Based Consumer Sales Promotion

430 Many sales promotions emphasize short-term price reductions or Figure 13.10:
rebates that encourage people to choose a brand, during the deal Types of
period. If used too frequently, consumers become conditioned to Consumer Sales
purchase only when the product is at a low promotional price. Promotion
Coupons are certificates redeemable for money off on a purchase

and are the most common price promotion.
Price deals, refunds, and rebates are temporary price reductions

to stimulate sales. This price deal may be printed on the package
itself, or it may be a price-off flag or banner on the store shelf.
Alternatively, companies may offer rebates that allow the
consumer to recover part of the purchase price via mail-ins to the
manufacturer.
Frequency programs, also called loyalty or continuity programs,

offer a consumer a discount or a free product for multiple
purchases over time.
Special/bonus packs involve giving the shopper more products

instead of lowering the price. A special pack also can be in the
form of a unique package such as a reusable decorator dispenser
for hand soap.
p. 430 4.2.2 Attention-Getting Consumer Sales Promotions

Attention-getting consumer promotions stimulate interest in a
company’s products. Some typical types of attention-getting
promotions include the following:
Contests and sweepstakes: a contest is a test of skill, while a

sweepstake is based on chance.
Premiums are items offered free to people who have bought a

product.
Product sampling encourages people to try a product by

distributing trial-size and sometimes regular-size versions in
stores, in public places such as student unions, or through the
mail. Many marketers now distribute free samples through sites

on the Internet
Use Websites Here: On-line coupon consolidators:

coupons.smartsource.com
Student Project: Discuss some of your favorite sales promotions.

Did the sales promotion actually cause you to buy the product
being promoted? Explain how the promotion worked. Why did it
work? What has been the impact on your future buying behavior?
p. 431- 4.3 Trade Sales Promotion: Targeting the B2B Customer Figure 13.11 Comment [ITS1]: Key term
432 Sales promotions target the B2B customer—located somewhere Trade Sales
within the supply chain. Such entities are traditionally referred to Promotions
as “the trade.”
4.3.1 Discount Promotions Table 13.4

Characteristics of
Discount promotions (deals) reduce the cost of the product to the Trade Sales
distributor or retailer or help defray its advertising expenses. Promotion
Approaches
4.3.2 Co-Op Advertising
Another type of trade allowance is co-op advertising. These
programs offer to pay a portion, usually 50 percent, of the cost of
any retailer advertising that features the manufacturer’s product.
p. 433 4.3.3 Sales Promotion Designed to Increase Industry

Visibility
Other types of trade sales promotions increase the visibility of a
manufacturer’s products to channel partners within the industry.
Forms of sales promotion include the following:

 Trade shows
 Promotional products
 Point-of-purchase displays
 Incentive programs
p. 434 Real People, Real Choices: Here’s My Choice at Brownstein

Group
 Marc selected option #1.
Brand You: Create an award-winning advertising campaign for

your personal brand. Think of your cover letter and resume as
your advertising…the award is landing the job you want. Learn
simple tips that can make your cover letter and resume more
powerful and stand out in the crowd. Check out the cover letter
and resume examples in Chapter 13 of Brand You.

WEB RESOURCES
Pearson Education Inc.: www.mymktlab.com
Examples of Sex Appeal: www.abercrombie.com Abercrombie & Fitch - sex appeal

www.hydroxycut.com
Brownstein Group (Real People, Real Choices): www.brownsteingroup.com
IHOP slogan–come hungry, leave happy: www.ihop.com
T-Mobile Liverpool station pedestrian dance:

www.youtube.com/watch?v=VQ3d3KigPQM&feature=player_embedded#at=30
Coupons for brand-name products: www.print.coupons.com
Product samples: www.freesamples.com and www.startsampling.com
On-line coupon consolidators: www.coupons.smartsource.com
LG opened a tie-in internet site for the movie, Iron Man: www.insidethesuit.com
Leo Burnett advertising agency: www.leoburnett.com
The Martin Agency: www.martinagency.com
Fallon Worldwide: www.fallon.com
J. Walter Thompson advertising agency: www.jwt.com

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Part 4: Deliver and Communicate the Value Proposition

II. CHAPTER OBJECTIVES

III. CHAPTER OUTLINE

Copyright © 2016 Pearson Education, Inc.

approached the client with three possible responses. Each of these

The vignette ends by asking the student which option he/she

1.1 Marketing communication performs one or more of four roles:

p. 398 Integrated marketing communication (IMC) is the process that

To achieve marketing communication goals, marketers use a Figure 13.1

Copyright © 2016 Pearson Education, Inc.

social media and other online buzz-building activities.

p. 400 1.2 Models of Marketing Communication

 The importance of the updated “many-to-many” model of

 Marketers also talk one to one with consumers and

►Marketing Moment In-Class Activity

p. 400 1.3 The Communication Model Figure 13.2

p. 401 1.3.1 The Source Encodes

p. 401 1.3.2 The Message Exhibit 13. 2

p. 401 1.3.3 The Medium

Copyright © 2016 Pearson Education, Inc.

p. 401 1.3.4 The Receiver Decodes

Marketers have a lot more control over some kinds of marketing

Copyright © 2016 Pearson Education, Inc.

1.4.1 Mass Communication: The One-to-Many Model Exhibit 13. 5

Consumer sales promotion includes programs such as contests,

Public relations describes a variety of communication activities

1.4.2 Personal Communication: One-to-One Model

Salespeople are a valuable source of communication because

3. 2. OVERVIEW OF PROMOTIONAL PLANNING Figure 13.4

Copyright © 2016 Pearson Education, Inc.

p. 405 2.1 Step 1: Identify the Target Audience(s)

p. 405 2.2 Step 2: Establish the Communication Objectives

►Marketing Moment In-Class Activity

p. 407 2.3 Step 3: Determine and Allocate the Marketing

p. 407 2.3.1 Determine the Total Promotion Budget

Copyright © 2016 Pearson Education, Inc.

promotion budget is based on last year’s sales or on estimates for

The competitive-parity method is a fancy way of saying “keep

The problem with top-down techniques is that budget decisions

That is what bottom-up budgeting techniques attempt.

This bottom-up logic is at the heart of the objective-task method,

p. 408 2.3.2 Decide on a Push or a Pull Strategy

In contrast, a company that relies on a pull strategy is counting

Copyright © 2016 Pearson Education, Inc.

efforts focus on media advertising and consumer sales promotion

In contrast, a company that relies on a pull strategy is counting

►Marketing Moment In-Class Activity

p. 408 2.3.3 Allocate the Budget to a Specific Promotion Mix

p. 408 2.4 Step 4: Design the Promotion Mix

The message should ideally accomplish four objectives (though a

Activity: Illustrate how the AIDA model works using an

Copyright © 2016 Pearson Education, Inc.

random factors in the marketing environment.

As a rule, various types of sales promotion are the easiest to

p. 409 2.6 Multi-channel Promotional Strategies

Advertising is non-personal communication an identified sponsor

Authenticated streaming is a term that describes using your

p. 410- 3.1 Types of Advertising Figure 13.6

p. 411 3.1.2 Institutional Advertising