Chapter 13: Engaging Customers and Communicating Customer Value and
Advertising
Chapter Objectives
1. Discuss the process and advantages of integrated marketing communications in
communicating customer value.
2. Define the five promotion tools and discuss the factors that must be considered in shaping
6. Describe the major decisions in advertising, including setting objectives and budget;
Teaching Suggestions
The following explanations and suggestions are outlined based on the Chapter Objectives.
1. Discuss the process and advantages of integrated marketing communications in
communicating customer value.
Under this concept, the company carefully integrates its many communications channels
to deliver a clear, consistent and compelling message about the organization and its
2. Define the five promotion tools and discuss the factors that must be considered in
shaping the overall promotion mix.
Break your students into groups and assign each group a specific hospitality company.
Ask them to identify the different elements of their promotion mix. Which
element do they think is most effective? Which element do they think is least effective?
Why?
also called its marketing communications mix
consists of the specific blend of advertising, public relations, personal selling, sales
promotion, and direct-marketing tools that the company uses to communicate customer
value and build customer relationships.
Advertising: Any paid form of nonpersonal presentation and promotion of ideas,
3. Outline the steps in developing effective marketing communications.
Have your students design a marketing communication for their hospitality company
from #2 above. Be sure to have them evaluate each step in this process.
Identifying the Target Audience: The target audience heavily affects the
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4. Explain the methods for setting the promotion budget and factors that affect the
design of the promotion mix.
The Affordable Method: Setting a promotion budget at what a company thinks
5. Define the roles of advertising in the promotion mix.
Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods
or services by an identified sponsor. Marketing management must make the following
five important decisions in developing an advertising program:
6. Describe the major decisions in advertising, including setting objectives and budget;
creating the advertising message; selecting advertising media; choosing media types,
vehicles, and timing; and evaluating advertising.
Marketing management must make five important decisions in developing an advertising
program:
(2) Creating the Advertising Message: In putting the message together, the marketing
(3) Selecting Advertising Media: The major steps in media selection are deciding on
(4) Choosing Media Types, Vehicles and Timing: This includes understanding the
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Chapter Outline
I. Promotion Mix [Slide 13-4]
O. Advertising. Any paid form of nonpersonal presentation and promotion of ideas,
goods, or services by an identified sponsor.
II. Integrated Marketing Communications. [Slide 13-5] The company carefully integrates its
many communications channels to deliver a clear, consistent, and compelling message
about the organization and its brands.
E. The new marketing communications landscape
F. The Shifting Marketing Communications Model
3.Consumers are changing. Communication through digital, mobile and
G. The need for Integrated Marketing Communications
1.Integrated marketing communications calls for recognizing all touch
points where the customer may encounter content about the company and
its brands.
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H. A View of the Communications Process [Slide 13-6]
1.IMC calls for recognizing all contact points where the customer may
2.IMC ties together all the company
3.Four more are major communication functions encoding, decoding,
III. Steps in Developing Effective Communications [Slide 13-7]
A. Identify the target audience
B. Determine the communication objective. [Slide 13-8] The six buyer readiness
states are awareness, knowledge, liking, preference, conviction, and purchase.
C. Design a message [Slide 13-9]
2.Three problems that the marketing communicator must solve:
a. Message content (what to say). There are three types of appeals:
i. Rational appeals relate to audience self-interest. They show
b. Message structure (how to say it)
i. Whether to draw a conclusion or leave it to the audience.
c. Message format (how to say it symbolically)
i. Visual ad: using novelty and contrast, eye-catching pictures
D. Select communication channels [Slide 13-10]
1.Personal communication channels. Used for products that are expensive
2.Nonpersonal communication channels. Include media (print, broadcast,
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IV. Setting the Total Promotion Budget and Mix
A. Setting the total promotional budget [Slide 13-11]
2.Percentage of sales method. Companies set promotion budget at a certain
percentage of current or forecasted sales or a percentage of the sales price.
4.Objective and task method. [Slide 13-12] Companies develop their
B. Shaping the Overall Promotion Mix
C. The nature of each promotional tool
1.Advertising suggests that the advertised product is standard and
2.Personal selling builds personal relationships, keeps the c
3.Sales promotion includes an assortment of tools: coupons, contests, cents-
off deals, premiums, and others. It attracts consumer attention and
4.Public relations has believability. It reaches prospective buyers and
D. Promotion mix strategies [Slide 13-17]
1.Type of product and market. The importance of different promotional
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a. Push strategy. The company directs its marketing activities at
channel members to induce them to order, carry, and promote the
product.
V. Advertising. [Slide 13-18] We define advertising as any paid form of nonpersonal
VI. Major Decisions in Advertising
A. Setting objectives. [Slide 13-19] Objectives should be based on information about
the target market, positioning, and market mix. Advertising objectives can be
classified by their aim: to in-form, persuade, or remind.
1.Informative advertising. Used to introduce a new product category or
B. Setting the advertising budget. [Slide 13-20] Factors to consider in setting a
budget are the stage in the product life cycle, market share, competition and
clutter, advertising frequency, and product differentiation.
2.Overall promotional budget
C. Developing the advertising strategy
D. Creating the advertising message [Slide 13-21]
2.Merging Advertising and Entertainment
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E. Selecting Advertising Media [Slide 13-23]
1.Deciding on reach, frequency, and impact
2.Choosing among major media types. Choose among newspapers,
F. Evaluating advertising effectiveness and the return on advertising investment.
[Slide 13-24] There are three major methods of advertising pretesting and two
popular methods of post-testing ads.
1.Measuring the communication effect copy testing
a. Direct rating. The advertiser exposes a consumer panel to
2.Post-testing
3.Recall tests.
a. The advertiser asks people who have been exposed to magazines or
television programs to recall everything that they can about the
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Answers to Discussion Questions
1. Explain the difference between promotion and advertising.
2. Explain the concept of integrated marketing communications.
Under the concept of integrated marketing communications, a company carefully
3. Recently, a number of restaurants have shifted some of their promotional budget
from advertising to public relations. What benefits does public relations offer that
would make the restaurants spend more?
Show your students an article or independent review about a restaurant and an
4. The percentage of sales method is one of the most common ways of setting a
promotional budget. What are some advantages and disadvantages of this method?
Many companies use the percentage of sales method because it is easy and provides a
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5. Apply the five major tools in the marketing communication mix to a hospitality or
travel company by showing how a company can use all these tools.
This is a good topic for class discussion. For example, a hotel can advertise in prominent
6. According to advertising expert Stuart Henderson Britt, good advertising objectives
spell out the intended audience, the advertising message, the desired effects, and the
criteria for deter
s be
part of the advertising objective? What are some effects that an advertiser wants a
campaign to achieve?
This is also a good topic for class discussion. For example, these are essential