Engaging Consumers

and Communicating
Customer Value-

Integrated Marketing
Communication Strategy

CHAP 14
 Topic Outline
01 5 promotion mix tools

02 Integrated marketing communications

03 Effective Marketing Communication

04 Setting the Total Promotion Budget and Mix

 Topic Outline
01 5 promotion mix tools

02 Integrated marketing communications

03 Developing Effective Marketing Communication

04 Setting the Total Promotion Budget and Mix

 The Promotion Mix
• Promotion is not a single tool but rather a mix of several tools

• The promotion mix (marketing communications mix) is the specific blend of

advertising
public relations
personal selling
sales promotion
direct-marketing tools
that the company uses to persuasively communicate customer value and build
customer relationships
 Promotion mix tools
Advertising: paid form of nonpersonal presentation and promotion- broadcast, print,
online, mobile, outdoor,…
Sales promotion: Short-term incentives to encourage the purchase or sale- discounts,
coupons, displays, demonstrations, and events
Personal selling: Personal customer interactions- sales presentations, trade shows, and
incentive programs
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- press releases, sponsorships, events, and
webpages
Direct and digital marketing: Engaging directly with carefully targeted individual
consumers to both obtain an immediate response and build lasting customer relationship-
direct mail, email, catalogs, online and social media, mobile marketing, and more
 Topic Outline
01 5 promotion mix tools

02 Integrated marketing communications

03 Developing Effective Marketing Communication

04 Setting the Total Promotion Budget and Mix

 The New Marketing Communications Model

• Consumers are better informed and more communications empowered

• Marketing strategies are changing as mass markets have fragmented
• Advances in digital technology
 marketers foresee a shifting mix of both traditional mass media and
social media that engage more-targeted consumer communities in a
more personalized way.
• Rather than creating ads, marketers are considered as content
marketing managers- Creating, inspiring, and sharing brand
messages and conversations with and among consumers across a
fluid mix of paid, owned, earned, and shared channels.
 The Need for
Integrated Marketing
Communications
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
products.
 Topic Outline
01 5 promotion mix tools

02 Integrated marketing communications

03 Effective Marketing Communication

04 Setting the Total Promotion Budget and Mix

A View of the Communication Process
Steps in Developing Effective Marketing
Communication
This process consists of 6 steps:
•Determining
Identifying
the •Design a
the Target
Communication message
Audience
Objectives

Select the •Choosing

Collect
message Channels
feedback
source and media
1. Identifying the Target Audience

what will be said

how it will be said

when it will be said

where it will be said

who will say it

 2. Determining the
Communication Objectives

The marketing communicator needs to know where the target

audience now stands and to what stage it needs to be moved in the
consumer decision-making process

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3. Designing a Message

get Attention
hold Interest
arouse Desire
obtain Action
 3. Designing a Message
The marketing communicator must decide:
 what to say (message content)
 how to say it (message structure and format)

Message content is an appeal or theme that produce the desired response

Are you attracted to:

• benefits of the product?
• Creative content, funny content?
• Doing the right thing?
 3. Designing a Message

Message content is an appeal or theme that produce the desired response

• Rational appeals relate to the audience’s self-interest
• Emotional appeals attempt to stir up either negative or positive emotions
that can motivate purchase.
• Moral appeals are directed to an audience’s sense of what is “right” and
“proper.”
 3. Designing a Message
Message Structure
• whether to draw a conclusion or leave it to the
audience?
• whether to present the strongest arguments first or last?
• whether to present a one-sided argument? or a two-
sided argument?

Message Format: needs a strong format for the message

(decisions on the headline, copy, illustration, and colors)
 Personal
Communication
4. Choosing Channels
Communication
Channels
and Media
Nonpersonal
Communication
Channels
 4a. Personal Communication Channels
• two or more people communicate directly with each other (face-to-face, on the
phone, via mail, internet chat)
• are effective because they allow for personal addressing and feedback

• Control of personal communication:

 the company (company salespeople)
 independent experts—consumer advocates, bloggers, …
 neighbors, friends, family members,…
=> Word-of-mouth influence- The impact of the personal words and
recommendations of trusted friends, family,… on buying behavior
=> Opinion leaders (influentials or leading adopters) exert social influence on
others (skill, knowledge, personality, characteristics) and marketers identify them to
use as brand ambassadors (Buzz marketing)
organic vs orgasmic?
4b. Nonpersonal Communication Channels
Media that carry messages without personal contact or
feedback, including major media, atmospheres, and events

• Media:
print media (newspapers, magazines, direct mail)
broadcast media (television, radio)
display media (billboards, signs, posters)
online media (email, company websites, and brand mobile and
social media sites)
4b. Nonpersonal Communication Channels
• Atmospheres are designed environments that create or reinforce the
buyer’s leanings toward buying a product.

• Events are staged occurrences that communicate messages to target

audiences:
Press conferences
grand openings
shows and exhibits
public tours
other events.
 5. Selecting the Message Source and
6. Collecting Feedback
• Messages delivered by (via the communicator) highly credible
or popular sources are more persuasive
* Professionals- healthcare providers
* Celebrities- athletes, actors, musicians, and even cartoon
characters

• Collecting Feedback involves measuring behavior resulting

from the content—how many people bought the product, talked
to others about it, or visited the store.
 Topic Outline
01 5 promotion mix tools

02 Integrated marketing communications

03 Developing Effective Marketing Communication

04 Setting the Total Promotion Budget and Mix

Setting the Total Promotion Budget

the affordable method

the percentage-of- sales method

the competitive-parity method

the objective-and-task method


the affordable method
• Setting the budget at the level the
company can afford.
• Start with total revenues, deduct
operating expenses and capital
outlays, and then devote some
portion of the remaining funds to
advertising.
• Unfortunately, it completely
ignores the effects of promotion
on sales.
the percentage-of- sales
method
• Setting the budget at a certain
percentage of current or forecasted
sales or as a percentage of the unit
sales price.
• Simple to use and helps management
think about the relationships between
promotion spending, selling price, and
profit per unit.
• It wrongly views sales as the cause of
promotion rather than as the result
 the competitive-
parity method
• Setting the promotion budget to
match competitors’ outlays.
• Two arguments (but invalid):
**set their budgets based on the
industry average => competitors’
budgets represent the collective
wisdom of the industry
**helps prevent pro- motion wars
the objective-and-
task method
Developing the budget by:
(1)defining specific promotion
objectives
(2) determining the tasks needed
to achieve these objectives
(3) estimating the costs of
performing these tasks.
The sum of these costs is the
proposed promotion budget.
 Shaping the Overall Promotion Mix
• Integrated marketing communications = the company must blend
the promotion tools carefully into a coordinated promotion mix.
• But the design of their promotion mixes are different across
companies, so How?

The Nature of
Promotion Mix
Each
Strategies
Promotion Tool
 The Nature of Each Promotion Tool
Advertising
• reach masses of geographically dispersed buyers
• at a low cost per exposure, and
• enables the seller to repeat a message many times
• says positive about the company (as legitimate)
• build up a long-term image for a product and trigger quick sales
• Shortcomings: Very costly, impersonal, less direct persuasiveness
Sales Promotion
• includes a wide assortment of tools—coupons, contests, discounts, premiums, and others
• attract consumer attention, dramatize product offers and boost sagging sales
• invite and reward quick response
• are not as effective as advertising or personal selling in building long-run brand preference
and customer relationships.
 The Nature of Each Promotion Tool
Personal Selling
• most effective tool at certain stages of the buying process (particularly in building
preferences, convictions, and actions).
• most expensive promotion tool
Public Relations
• gets to buyers as “news and events”
• very believable than ads—news stories, features, sponsorships, and events
• reach many prospects who avoid salespeople and advertisements
• dramatize a company or product
Direct and Digital Marketing
• many forms from direct mail, catalogs, and telephone marketing to online, mobile, and
social media
• more targeted, directed to a specific customer or customer community
• Is interactive => well suited to highly targeted marketing efforts
 Promotion Mix Strategies
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.

Pull strategy
A promotion strategy that calls for spending a lot on consumer
advertising and promotion to induce final consumers to buy the product,
creating a demand vacuum that “pulls” the product through the channel.
 Push
• marketing activities toward
distribution channel members
• used to gain product exposure,
product demand, and consumer
awareness about a product
(usually new product)
• personal selling and trade
promotion
• usually used by B2B
Pull
• marketing activities toward final
consumers
• Used when a product becomes
established in the market, to
create loyal customers & draw
consumers to your products
• advertising, sales promotion and
direct and digital media
• usually used by B2C
1. John 's sales force works with Home Depot, who in turn sell
John products to final consumers.
2. Crest asked dentists to recommend its toothpaste to their
patients. It offered samples that dentists could buy at cost to
give to their patients to encourage patients to take better care of
their teeth.
3. Glasis is a type of paint made specifically for use on cars. An
ad in Motor Trend magazine advising consumers to request
their body shops use Glasis paint.
4. A customer goes to the supermarket, he/she looks for the
signs that notate sales and discounts— leading to picking up
some items he/she never knew he needed
5. Marie reaches out to businesses in her area via email
marketing, put ads in participating locations, and create a social
media business page to expand her reach.
6. To market his product, David decided to drive product
demand through social media buzz, word of mouth, and media
coverage.
7. James convinces major local retailers to stock his product
and prepares to present and sell his product at an upcoming
trade show.
8. Considering the laptop-purchase decision making. First, I will
do some online researches to come up with a short list of
alternatives. Then, I look for discounts, promotion and credit
terms at the store before making a purchase of Dell.
 A sales tactic in which a customer
is attracted by the advertisement of
a low-priced item but is then
encouraged to buy a higher-priced
Bait- and- one. It is unethical and illegal

switch For example, a large retailer

advertised a sewing machine at $299.
advertising However, when consumers come to
the store, the seller understated the
machine’s performance in an attempt
to switch buyers to a more expensive
machine.