Chapter 12 - Engaging Consumers and Communicating Customer Value: Advertising and Public Relations

Decision Point: Selecting a Television Vehicle Now that you have decided on television as the major media type for your advertising campaign, you must decide on specific media vehicles. You need to choose among the three television shows during which you can purchase ad space. Your budget is $2.3 million.

A popular cooking show that helps working moms get fast, healthy meals on the table. It has a viewership of 1.5 million. A 30-second commercial will cost $400,000. You chose to run your commercial during a popular cooking show for working moms. This was the best choice and very focused on your target market.

__________ is a promotion strategy that calls for spending a lot on consumer advertising and promotion to induce final consumers to buy the product. Brand content management An advertising strategy A pull strategy A push strategy

A pull strategy

__________ is a promotion strategy that calls for using the sales force and trade promotion to move the product through channels. A pull strategy An advertising strategy A push strategy Brand content management

A push strategy

__________ is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor. Sales promotion Public relations Personal selling Advertising

Advertising

Decision Point: Creating Your Advertising Message With your focused objective set, the next task is to choose the advertising message. Your creative team has come up with four possible messages for the Enliven national campaign. Examine the options and choose the best one for your advertising objectives.

Enliven: A Woman's Natural Choice to Renew Energy You selected "Enliven: A Woman's Natural Choice to Renew Energy." This was the best choice. This is a strong message that is consistent with the positioning of the product as natural. The message also clearly indicates that the product is for women.

__________ is direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships. Personal selling Direct marketing Advertising Sales promotion

Direct marketing

Decision Point: Selecting a Specific Media Vehicle The next step is to choose among media types to convey your message. You and the Chief Marketing Officer have narrowed the choices down to three specific media vehicles, based on Enliven's past campaigns and your current goals. The budgeting method you selected earlier will impact your options. Remember that your budget is $2.3 million. The Chief Marketing Officer says: "Any of these choices could work, but some will probably be more effective than others, given our budget and goals."

Television You chose television advertising. This was one of the best choices because you can reach your national target audience at a low cost per contact if the correct media vehicles are selected.

The __________ is setting the promotion budget at the level management thinks the company can afford. affordable method percentage-of-sales method objective-and-task method competitive-parity method

affordable method

The __________ is setting the promotion budget to match competitors' outlays. percentage-of-sales method competitive-parity method affordable method objective-and-task method

competitive-parity method

The __________ creates an imaginary situation around the product or its use. fantasy style mood or image style slice of life style lifestyle style

fantasy style

The __________ shows how a product fits in with a particular way of life. fantasy style mood or image style slice of life style lifestyle style

lifestyle style

The __________ shows people or cartoon characters singing about the product. musical style mood or image style fantasy style lifestyle style

musical style

The __________ is developing the promotion budget by 1) defining specific promotion objectives, 2) determining the tasks needed to achieve these objectives, and 3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget. percentage-of-sales method competitive-parity method affordable method objective-and-task method

objective-and-task method

The __________ is setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price. affordable method competitive-parity method percentage-of-sales method objective-and-task method

percentage-of-sales method

The __________ shows one or more typical people using the product in a normal setting. slice of life style mood or image style fantasy style lifestyle style

slice of life style

The purpose of _______ is to build selective demand. persuasive advertising informative advertising advertainment reminder advertising

persuasive advertising

__________ is a short-term incentive to encourage the purchase or sale of a product or service. Public relations Advertising Sales promotion Personal selling

Sales promotion

Decision Point: Choosing Your Message Style Now that you have chosen an advertising message, you must choose the style of execution. Your team has developed a brief ad concept for each possible type of message execution. The Chief Marketing Officer says: "Consumers who bought Enliven in the past are active moms who are interested in Enliven's health benefits. These consumers are also busy multi-taskers who want the energy to manage the many demands of their daily lives. Keep the target market in mind."

Slice of Life: A busy working mother struggles to balance work, exercise, and children. Enliven gives her the energy to manage and enjoy it all. You chose "Slice of Life." This was the best choice, because it allowed you to show the target market (women) how Enliven could benefit them in their daily lives.

Decision Point: Public Relations You recommend including public relations (PR) as part of the turmeric bar's IMC campaign. This would be the first time that In Fine Fettle included public relations, and the VP is unsure that public relations is the way to go. You convince the VP to give PR a try by reminding her that PR can be a cost-effective way to build goodwill with its publics, particularly because consumers often find PR to be very believable. The goal for the PR campaign is to present a message that is consistent with the other communication channels: turmeric meal replacement bars have pain-killing and anti-inflammatory powers in a convenient, delicious bar.

Sunday morning talk show: Sponsor the healthy eating segment of a Sunday morning TV talk show featuring functional foods. You chose Sunday morning talk show. That was the best choice. Sponsoring the healthy eating segment will allow In Fine Fettle to deliver a consistent message about the functional properties of its turmeric bar to a large audience.

Decision Point: Choosing Your Communication Objective In Fine Fettle's turmeric meal replacement bar is the first meal replacement bar from In Fine Fettle, but not the first turmeric meal replacement bar on the market. A handful of competitors are currently selling turmeric meal replacement bars in specialty grocery stores, health food stores, and online. In Fine Fettle feels that its product is superior to existing offerings based on the following attributes: In Fine Fettle's bars have the highest concentration of turmeric, giving it the highest level of anti-inflammatory properties. In Fine Fettle's bars are made with organic, non-GMO ingredients. In Fine Fettle's bars were rated as "best tasting" in a recent blind taste test. In Fine Fettle uses only ingredients purchased under Fair Trade agreements from sustainable sources. In Fine Fettle is considering three primary communication objectives: awareness, knowledge, and loyalty. Which should the company choose?

- Knowledge: Persuade the market that In Fine Fettle's brand of turmeric replacement bars is superior to the competition's. You chose knowledge. That was the best choice. Because there are currently turmeric meal replacement bars on the market, In Fine Fettle's communication will need to differentiate its product from the competition's.

Mentoring Moment: Advertising Objectives Advertising objectives can vary depending on the goals for the product and the stage of the product life cycle. . Informative advertising is often used in the ________ stage of the product life cycle.2. Informative advertising is useful to build ________ demand, which is demand for an overall product category.3. Persuasive advertising is used to build ________ demand. It is used when products are ________ and competition is still entering the market.4. Reminder advertising is used for ________ products to maintain existing customer awareness and loyalty.

-Introduction -Primary -Selective, Established -Mature That was correct! Informative advertising is often used in the introduction stage of the product life cycle. That was correct! Informative advertising is used to build primary demand for an overall product category. That was correct! Persuasive advertising is used to build selective demand, which is demand for a specific product or brand. That was correct! Persuasive advertising is used when products are established and competition is still entering the market. That was correct! Reminder advertising is used for mature products to maintain existing customer awareness and loyalty.

Mentoring Moment: Media Now that you have set your budget, the next step is to choose among media vehicles to convey your message. Before choosing, let's review some of the advantages of specific media vehicles. Match each media vehicle on the right to its advantage on the left. Drag and drop the media vehicle onto the box next to the appropriate advantage. When you have moved all the media types, click Submit.

1. High demographic and geographic selectivity -Radio 2. High credibility, prestige, and interest level -Magazines 3. Low cost per exposure for mass audiences -Television 4. High engagement and interactive capabilities -Digital and Internet 5. High repeat exposure/frequency -Billboard That was correct! Radio has high demographic and geographic selectivity. That was correct! Magazines can have high credibility, prestige, and interest level. That was correct! Billboards have high repeat exposure and frequency. That was correct! Television has a low cost per exposure (or per person) for mass audiences. That was correct! Digital media and Internet have high engagement and interactive capabilities.

Mentoring Moment: Determining How Much to Spend on Promotion One of the most challenging tasks for any firm, including In Fine Fettle, is determining how much to spend on promotion. Four basic methods are used for determining a firm's promotional budget: the affordable method, the percentage-of-sales method, the competitive-parity method, and the objective-and-task method.

Affordable Method The affordable method makes promotional spending a last priority, allocating budget to promotion only after operating expenses and capital spending is covered. Percentage-of-Sales Method The percentage-of-sales method budgets a certain percentage of current or forecasted sales for promotion. Competitive-Parity Method The competitive-parity method sets a firm's promotional budget such that it matches its competitors' spending. Objective-and-Task Method The objective-and-task method matches promotional spending with what the firm is trying to achieve.

Decision Point: Selecting Your Target Audience To begin, you must decide who your target market is going to be. Before you select a target market, you review the research on turmeric's functional properties. The curcumin in turmeric has been suggested by researchers to have the following functional properties: improving depression, lowering blood sugar, pain killing, and anti-inflammatory. Given these functional properties, In Fine Fettle's turmeric product development team has identified three potential target markets: adult athletes, diabetics, and patients improving depression. (See the table below.) Target Market Market Size Benefits Sought% Seeking Alternative/Natural Therapy Athletes 25 million Anti-inflammatory 70% People with diabetes 29 million Lowering blood sugar 25% People with depression 16 million Improving depression 40% A key factor in evaluating the target market's attractiveness is the market's desire for alternative/natural solutions because the turmeric meal replacement bar could be used as an alternative medical treatment. Which target market should you choose?

Athletes You chose athletes. That was the best choice. The combination of large market size and a significant percentage of athletes seeking alternative treatments results in a potential market size of 17,500,000.

Decision Point: Deciding on Media Timing The last step in your advertising campaign is to decide on the media timing.

Begin with a large pulse of advertising over the first two weeks, followed by steady advertising for the rest of the time frame. You selected the pulse style of media timing. This was the best choice for building brand preference and solidifying positioning for Enliven. The initial burst of heavy advertising should help to increase brand preference that will carry over to the next advertising period.

Decision Point: Your IMC Strategy With the four IMC tactics identified, you sit down with the turmeric product development team to discuss the strategy. The team disagrees about how to handle the IMC strategy; some team members feel that each channel presents an opportunity to deliver a unique message whereas other team members want to utilize a common message. Which of the three strategies do you recommend using for your IMC program?

Clear, consistent message across channels: Organize all communication so that the consumer receives the same consistent, compelling message regardless of channel. You chose clear, consistent message across channels. That was the best choice. Marketing communications are more effective when customers receive clear, consistent messages across multiple channels.

Decision Point: Sales Promotion With a plan for advertising in place, you turn your attention to sales promotion. If the product launch is going to be successful, consumers must be willing to try the turmeric meal replacement bar. Your experience in consumer packaged goods tells you that getting consumers to try the product for the first time will be challenging. In Fine Fettle's bar will be priced at $3.50, which is approximately $0.75 more than the "average" meal replacement bar. To get consumers to try the product, you suggest three different sales promotion tactics: coupons, buy one get one free, and sampling. Given your goal of reducing consumer risk from new product trial, which of the three sales promotion tactics do you recommend?

Free sample: Offer free samples of the bar to customers in natural foods grocery stores. You chose free sample. That was the best choice. Sampling allows consumers to try the turmeric bars without any financial risk.

__________ is building and maintaining relationships with legislators and government officials to influence legislation and regulation. Lobbying Public affairs Product publicity Press relations

Lobbying

Decision Point: Setting a Specific Advertising Objective Now that you have decided on persuasive advertising, you must decide how to further focus the advertising objective.

Reinforce the positioning of Enliven as healthy and natural. You chose to reinforce the positioning of Enliven as healthy and natural. This was the best choice because the safety of artificial ingredients is a current concern in the marketplace and it will be important to differentiate Enliven from competitors.

Decision Point: Advertising You have decided to keep advertising in the IMC plan and need to choose which advertising media type to include in your plan. The product development team and you have narrowed it down to three choices: radio, television, and magazine advertising. Before making a recommendation, you review the strengths and weaknesses of the media types. Media TypeOverall CostLength of ExposureTargeting Radio Low Shortest Poor Television High Medium Medium Magazine Medium Longest Excellent Because advertising will be only one of the elements in your IMC program, your goal is to balance cost, exposure, and targeting as you introduce the meal replacement bar to your target audience. Which type of advertising will you recommend?

Magazine: Place half-page color ads in special-interest health magazines such as Health and Natural Health showcasing the turmeric bar's unique benefits. You chose magazine. That was the best choice. With a moderate cost, excellent targeting, and the potential for a long exposure, magazine advertising is well suited for the introduction of the turmeric meal replacement bar.

Decision Point: Setting Your Advertising Budget Now that you have selected the focused advertising objectives for your campaign, it is time to determine the advertising budget.

Objective-and-task method: Determine specific advertising objectives and set the required budget to accomplish each. You chose the objective-and-task method. This was the best choice, because it forced the company to think logically about advertising objectives, the tasks needed to complete these objectives, and the estimated costs of performing these tasks. Your advertising budget is $2.3 million.

Decision Point: Designing Your Promotional Mix In the next turmeric product team meeting, you begin discussing the integrated marketing communications (IMC) plan. Although the budget has not been finalized, the team feels that they will not have enough funding to include every promotional tool in the IMC plan. Given what you know about the strengths and weaknesses of the promotional elements available to In Fine Fettle and the fact that the meal replacement bar is a new product launch for the company, which element would you recommend eliminating from the integrated marketing communications plan?

Personal Selling You chose personal selling. That was the best choice. Personal selling involves the interaction between seller and buyer, which can be a significant investment for a firm, particularly for a firm selling consumer packaged goods like In Fine Fettle.

__________ is personal presentation by the firm's sales force for the purpose of making sales and building customer relationships. Personal selling Public relations Sales promotion Advertising

Personal selling

Decision Point: Choosing the Type of Advertising Objective Your first task is to set an advertising objective. Remember, your key goals are to build brand preference for your product and to differentiate your product as the safe and natural choice. Decide on the best type of objective for your national campaign.

Persuasive advertising: Reinforce why consumers should choose Enliven as their first choice. You selected persuasive advertising. This was the best choice. It is important to build selective demand because you have new competitors entering the market.

__________ is a function in which companies create and place newsworthy information in the news media to attract attention to a person, product, or service. Lobbying Product publicity Press relations Pubic affairs

Press relations

__________ is an activity of public relations that involves the publicizing of specific products. Lobbying Product publicity Public affairs Press relations

Product publicity

__________ is building and maintaining national or local community relationships. Product publicity Public affairs Lobbying Press relations

Public affairs

__________ is 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. Sales promotion Public relations Advertising Personal selling

Public relations

Decision Point: Evaluating Advertising Effectiveness After the campaign has run for a month, the Chief Marketing Officer calls a meeting with you to discuss the effectiveness of the campaign. Chief Marketing Officer: "Let's sit down and look at the development of the campaign overall. How do you think we should measure the success of this initial campaign?"

We need to assess whether our message is being received and understood. We should conduct market research to assess awareness of brand benefits and brand preference. You recommended conducting market research to determine how effective the advertising campaign was at increasing awareness of brand benefits and brand preference. This was the best choice because it specifically addressed the objectives of the campaign.

Decision Point: Direct and Digital Last but not least, you work on the direct and digital element of the IMC plan. With the bulk of the communications budget allocated to advertising, sales promotion, and public relations, you need to limit your direct and digital investment to one tactic for the product launch. Consistent with your other communication channels, your goal for the direct/digital channel is to communicate the benefits of the turmeric meal replacement bar to your target audience. Review the direct/digital tactic summary below and recommend a tactic to incorporate into the IMC plan, keeping in mind the strengths and weaknesses of each tactic and your goals for the turmeric bar launch. TacticOverall CostAudience SizeTargeting Telemarketing High Medium High Direct mail Medium Small High Website Low Large Low

Website: Develop an In Fine Fettle website featuring the benefits of the turmeric meal replacement bars. You chose website. That was the best choice. Its low cost and large audience are beneficial, even though targeting is difficult. Websites can combine text, photos, and video to communicate the benefits of the turmeric meal replacement bar.