Chapter 12: Communicating Customer Value
Comparative advertising
A company directly or indirectly compares its brand with one or more other brands
Advertising agency
A marketing services firm that assists companies in planning, preparing, implementing, and evaluating all or portions of their advertising programs
Pull strategy
A promotion strategy that calls for spending a lot on adverting and consumer promotion to induce final consumer to buy the product, creating a demand vacuum that "pulls" the product through the channel
Push strategy
A promotion strategy that calls for using the sales force and trade promotion to push the product through channels. The producer promotes the product to channel members who in turn promote it to final consumers
Advertising objective
A specific communication task to be accomplished with a specific target audience during a specific period of time. The overall advertising goal is to help build customer relationships by communicating customer value
Madison&Vine
A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages
Advertising
Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
Persuasive advertising
Building brand preference
Public relations (PR)
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
Integrated marketing communications (IMC)
Carefully integrating and coordinating the company's many communications channels to deliver a clear, consistent and compelling message about the organization and its product
Objective-and-task method
Developing the promotion budget by: 1) Defining specific objectives 2) Determining the tasks that must be performed to achieve these objectives 3) Estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget
Direct marketing
Direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships
Reminder advertising
Maintaining customer relationships
Personal selling
Personal presentation by the firm's sales force for the purpose of making sales and building customer relationships
Percentage-of-sales method
Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sale price
Affordable method
Setting the promotion budget at the level management thinks the company can afford
Competitive-parity method
Setting the promotion budget to match competitors' outlays
Sales promotion
Short-term incentives to encourage the purchase or sale of a product or service
Executive style
The approach, style, tone, words, and format used for executing an advertising message
Creative concept
The compelling "big idea" that will bring the advertising message strategy to life in a distinctive and memorable way
Advertising budget
The dollars and other resources allocated to a product or company advertising program
Return on advertising investment
The net return on advertising investment divided by the cost of the advertising investment
Promotion mix (or marketing communications mix)
The specific blend of promotion tools that the company uses to persuasively communicate customer value and build customer relationships (consists of the specific blend of advertising, personal selling, sales promotion, public relations, and direct-marketing tools that the company uses)
Advertising strategy
The strategy by which the company accomplishes its advertising objectives. It consists of two major elements: creating adverting messages and selecting advertising media
Advertising media
The vehicles through which advertising messages are delivered to their intended audiences
Informative advertising
Used heavily when introducing a new product category