Marketing Management 14

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Global Edition

Chapter FourteenCommunicating Customer Value:

Integrated Marketing

Communications Strategy

Copyright ©2014 by Pearson Education


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Communicating Customer Value: Integrated

Marketing Communications Strategy

• The Promotion Mix

• Integrated Marketing Communications

• A View of the Communications Process

• Steps in Developing Effective Marketing

Communication

•

Setting the Total Promotion Budget and Mix• Socially Responsible Marketing Communication

Topic Outline



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• The promotion mix is the specific blend of

advertising, public relations, personal

selling, and direct-marketing tools that thecompany uses to persuasively

communicate customer value and build

customer relationships

The Promotion Mix



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The Promotion Mix

Advertising is any paid form of non-personal

presentation and promotion of ideas,goods, or services by an identified sponsor

• Broadcast

• Print

• Internet• Outdoor

The Promotion Mix



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The Promotion Mix

Sales promotion is the short-term incentive to

encourage the purchase or sale of a productor service

• Discounts

• Coupons

• Displays• Demonstrations

The Promotion Mix



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The Promotion Mix

Public relations involves building good relationswith the company’s various publics by

obtaining favorable publicity, building up agood corporate image, and handling orheading off unfavorable rumors, stories, andevents

•

Press releases• Sponsorships

• Special events

• Web pages

The Promotion Mix



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The Promotion Mix

Personal selling is the personal

presentation by the firm’s sales forcefor the purpose of making sales andbuilding customer relationships

• Sales presentations

• Trade shows

• Incentive programs

The Promotion Mix



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The Promotion Mix

Direct marketing involves making directconnections with carefully targetedindividual consumers to both obtain animmediate response and cultivate lasting

customer relationships—through the use ofdirect mail, telephone, direct-responsetelevision, e-mail, and the Internet tocommunicate directly with specific

consumers• Catalog

• Telemarketing

• Kiosks

The Promotion Mix



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Integrated MarketingCommunications

• Consumers are better

informed

• More communication

• Less mass marketing

•

Changingcommunications

technology

The New Marketing Communications Model



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Integrated MarketingCommunications

Integrated marketing communications is the

integration by the company of itscommunication channels to deliver a clear,

consistent, and compelling message about the

organization and its brands

The Need for Integrated MarketingCommunications



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Integrated Marketing

Communications Strategy



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A View of the Communication

ProcessThe Communication Process



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Steps in Developing Effective

Marketing Communication

Identify the target audience

Determine the communication

objectives

Design the message

Choose the media

Select the message source



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Steps in Developing Effective

Communication

Identifying the Target market

What will

be said

How it will

be said

When itwill be said

Where itwill be said

Who willsay it



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Steps in Developing EffectiveMarketing Communication

AIDA Model

• Get Attention

• Hold Interest

• Arouse Desire• Obtain Action

Designing a Message



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Message content is an

appeal or theme thatwill produce the

desired response

Message Format

Designing a Message



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Rational appeal relates to the audience’s

self-interest

Emotional appeal is an attempt to stir up

positive or negative emotions to motivate

a purchase

Moral appeal is directed at the audience’ssense of right and proper

Message Content



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Personal communication involves two or more

people communicating directly with each

other• Face to face

• Phone

• Mail

• E-mail

• Internet chat

Choosing Media



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Personal communication is effective because

it allows personal addressing andfeedback

Control of personal communication

• Company

• Independent experts

• Word of mouth

Choosing Media



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Opinion leaders are people within a reference

group who, because of their special skills,knowledge, personality, or other

characteristics, exerts social influence on

others

Buzz marketing involves cultivating opinionleaders and getting them to spread

information about a product or service to

others in their communities

Choosing MediaPersonal Communication



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Non-personal

communication is media

that carry messages withoutpersonal contact or

feedback, including major

media, atmospheres, and

events that affect the buyer

directly

Non-Personal Communication Channels



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Major media include print, broadcast,

display, and online media

Atmospheres are designed environments

that create or reinforce the buyer’s

leanings toward buying a product

Non-Personal Communication Channels



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Events are staged occurrences that

communicate messages to target

audiences• Press conferences

• Grand openings

• Exhibits

• Public tours

Nonpersonal Communication Channels



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The message’s impact on the targetaudience is affected by how the

audience views the communicator• Celebrities

– Athletes

– Entertainers

• Professionals

– Health care providers

Selecting the Message Source



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Involves the communicator understanding

the effect on the target audience bymeasuring behavior resulting from the

behavior

Collecting Feedback



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Setting the Total PromotionBudget and Mix

Affordable budget

method sets thebudget at an

affordable level

• Ignores the effects

of promotion onsales

Setting the Total Promotion Budget



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Percentage of sales method sets the budget at a

certain percentage of current or forecastedsales or unit sales price

• Easy to use and helps management think

about the relationship between promotion,

selling price, and profit per unit• Wrongly views sales as the cause rather than

the result of promotion





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Competitive-parity method sets the budget to

match competitor outlays• Represents industry standards

• Avoids promotion wars





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Objective-and-task method sets the budget based

on what the firm wants to accomplish withpromotion and includes:

• Defining promotion objectives

• Determining tasks to achieve the objectives

• Estimating costs





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• Advertising reaches masses of

geographically dispersed buyers at a lowcost per exposure, and it enables the seller

to repeat a message many times

Shaping the Overall Promotion MixThe Nature of Each Promotion Tool



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Personal selling is the most

effective method atcertain stages of thebuying process,particularly in building

buyers’ preferences,convictions, actions, anddeveloping customerrelationships





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Sales promotion includes coupons, contests,

cents-off deals, and premiums that attractconsumer attention and offer strong

incentives to purchase, and can be used to

dramatize product offers and to boostsagging sales





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Public relations is a very believable form of

promotion that includes news stories,features, sponsorships, and events

Direct marketing is a non-public, immediate,

customized, and interactive promotional tool

that includes direct mail, catalogs,telemarketing, and online marketing





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Promotion Mix Strategies

Shaping the Overall Promotion

Mix



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• Communicate openly and honestly with consumers and resellers

• Avoid deceptive or false advertising

• Avoid bait-and-switch advertising

• Conform to all federal, state, and local regulations

Socially Responsible Marketing

Communication

• Follow rules of “fair competition”

• Do not offer bribes

• Do not attempt to obtain

competitors’ trade secrets

• Do not disparage competitors or

their products

C i ht ©2014 b P Ed ti

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Marketing Management 14