Cbmec 2 M3 L1,2

Module 3- Product and Brand Strategy With pricing Techniques and
1 Integrated Marketing Communications
PROGRAM OUTCOMES
By the time of graduation, the students of the program shall be able to:
INTRODUCTION
The accomplishment of the company's predetermined objectives critically relies in the sale of products
or services. It serves as a vehicle in which the company enjoys their milestones of survival and growth.
Hence, aside from looking into some concerns of product and brand strategies, pricing methodologies are a
must as well. First, this chapter will dwell in the classification of products; product mix and product line
strategies, product life cycle, product planning and development process and uncover reasons why new
product fails. Second, the chapter will discuss about pricing and its objectives, pricing strategies and some
factors that may affect pricing decisions. The third area of concern in this chapter is the rationale for market-
driven concept that may result to customer delight.
Lesson 2 provides the rational discussions pertaining to the essentials and types of marketing
communications and promotion mix including the concept of integrated marketing communications. It
also justifies the use of another modern marketing concept termed as Integrated Marketing
Communications with the common goal of developing marketing communications programs that
coordinate and integrate all elements of promotion such as advertising, sales promotion, personal selling
and publicity in order to present a consistent message to potential customers. Further, this chapter also
presents discussion of each of the elements of promotion.
This module is divided into two lessons, namely:

Lesson 1 Nature and Definition of Product; and
Lesson 2 Essential and Types of Marketing Communications
MODULE LEARNING OUTCOMES
In this module, you should be able to:

1. explain the nature of a product in consideration to its degree of tangibility and intangibility and the
difference between products mix and product line;
2. identify and explain the categories of New Product Strategy; and
3. explain the essentials and types of marketing communications.
Lesson 1: Nature and Definition of Product
SPECIFIC LEARNING OUTCOMES
In this lesson, you should be able to:

1. explain the New Product Planning and Development process to improve the brand equity of the
newly introduced product/service
2. associate branding strategies in crafting new products and services that deliver great buying or
shopping experience;
3. identify and explain the pricing strategies; and
4. discuss influences in pricing decisions..
5.
PRE-ASSESSMENT
True or False. Write T if the statement is correct and F, if the statement is wrong.
1. Product may take into various forms and the kind of reception that the company has for the
latter has parallel implications to its continued existence and profitability.
2. A product, either goods or services, is a total set of physical and non-physical attributes in
which the targeted buyer intends to acquire, alongside with his/her satisfaction criteria, in
exchange of a specified amount.
3. Consumer goods also known as final goods are commodities subsequently bought for final or
personal use addressing current needs or wants with no tinge of intention to further process
or transform the object with the purpose of reselling or earning profit.
4. Industrial goods are goods purchased for business use under different circumstances with the
primary purpose of reselling the output to target industrial buyers.
5. Product mix is a group of everything a company sells. It consists of a wide range or a mixture
of product lines that a multi-brand organization wishes to offer their target customers.
6. This marketing strategy being used by many companies allows them to experiment plunging
into new market segments which may range their current market going to a bunch of young
urban, or a group of middle-class professional or perhaps to even mature markets like the
aging populace.
7. Product mix is a group of everything a company sells.
8. Dealing with this diversity will be a lot easier for companies who have sustained a well-
thought-of status quo.
9. This life cycle concept could be sudden to a number of products but could also be gradual to
some depending on the amount of company support and strategy given to each product.
10. Some strategies may include price reductions, increasing product quality or adding product
features, intensifying product promotions and the like. This may prevent immediate decline
and may save the product from its early demise.
LESSON MAP
Nature and definition of Products
managing Product Mix and Product line
The product Life Cycle and Producdt Life cyle Management
Market-driven Producdt Planning and Developmnt Process
Categoories of New Product Strategy
New Producdt Planning and Development Process
Branding and Brnd Equity
influences in Pricing Decision
Why Product Strategy is Marekt -Driven?
Figure 1 describes the flow of Product and Brand Strategy with Pricing Techniques
CORE CONTENTS
ENGAGE: Image Analysis

Base on the image above give your analysis in one paragraph.

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EXPLORE: Reading Concepts
Nature and Definition of Product. Product may take into various forms and the kind of reception
that the company has for the latter has parallel implications to its continued existence and profitability. This is
because there are products that may possess a bundle of both tangibility and intangibility. This depends on
the decision of the company as to where they would like to put much of their concentration, either offering a
product which possesses a higher degree of tangibility or offering a product with a mixture of both'.
Let us take for instance, the business model being practiced by Izumi Wellness Center. They
provide free health service to their clients thru the use of a multi-functional health device that emits high
potential ultra-magnetic waves. The wave penetrates to the body of anyone who sits on the chair that is
connected to the health device. It is believed that the magnetic waves could address various kinds of
ailments like stroke, heart problems and the like. However, as part of the therapy, their campaign includes
educating their clients about an intake of a bottle of Alkaline water. During the 30-minute session, clients
are advised to combine the therapy with a bottle of alkaline water for them to really maximize the health
benefit of every session. Bottles of Alkaline water are available at the center for a specific and reasonable
amount. Considering this example, to where could we classify the offering of this wellness center the fact
that they do not generate income from that special kind of chairs but from the alkaline water they sell.
Figure 5.1depicts the variability of the nature of a product. PICTURE

In positioning products to the market, company may consider solidifying the strengths of the product's
attributes or characteristics by taking the diligence to decide whether adding a service component to a
product item could become a means where they would become closer attaining their objectives. After taking
a look into the concept of tangibility and intangibility, which are all controllable factors, we can now define
what a product is on the standpoint of a marketing concept philosophy. A product, either goods or services,
is a total set of physical and non-physical attributes in which the targeted buyer intends to acquire, alongside
with his/her satisfaction criteria, in exchange of a specified amount. From this premise, a company has the
options to bundle the object with other accessories, packaging and services.
Classification of Products. The purpose with which the product shall be used by the customer and the
intention of the customer whether to further transform or process the object based on the customer's frame of
reference, make up the classification of product into two (2) main categories:(a) consumer goods and (b)
industrial goods3.
1. Consumer Goods. Consumer goods also known as final goods are commodities subsequently bought for
final or personal use addressing current needs or wants with no tinge of intention to further process or
transform the object with the purpose of reselling or earning profit. Consumer goods are grouped accordingly
as follow:
a. Convenience Goods. These are food items, newspaper, medicines, etc., which are
frequently purchased consumer items that are widely available in various retail outlets in
which the buyer could acquire with less or minimum effort.
b. Shopping Goods. These are consumer goods like that of a pair of sneakers or an
appliance, in which the customer, before acquiring them, undergoes a process of evaluation
such as comparing the product's quality, cost, features and other attributes to other store
outlets or brands; hence exerting much time and energy aiming to acquire product items
that would exceed one's expectation.
c. Specialty Goods .This classification refers to consumer goods that may possess
exceptional or unique characteristics that the consumers who would like to acquire them
shall need to exert extra purchasing effort like going to a limited number of retail outlets or
even instance, exclusive outlets where products are made available, say for instance,
imported or first-class wines, high fashion clothes, etc.
2. Industrial use Goods. Industrial goods are goods purchased for business use under
different circumstances with the primary purpose of reselling the output to target industrial
buyers. These are industrial goods that are bought either for the purpose of using them as
an important part or component in the installation of a machine or equipment; or it could
take a form of an important
Managing Product Mix and Product Line
Product mix is a group of everything a company sells. It consists of a wide range or a mixture of
product lines that a multi-brand organization wishes to offer their target customers. Needless to say, then, a
product line refers to a unique product category or brand within the company's product mix. With the advent
of diversification strategy due to unyielding and highly competitive business market, most companies have
realized the importance of having multiple products. Even top companies in the country or all over the world
have wide product portfolio. For example, Nestlé’s product portfolio consists of baby foods, bottled water,
cereals, chocolates and confectionery, coffee, culinary and frozen products, dairy, ice cream products and a
lot more.
As mentioned, product line is a subset of the company's product mix. It generally refers to the
classification of products under similar class that an organization offers to their targeted market segment. For
example, Samsung maintains similar number of product lines such as air conditioners, television, smart
phones, homes appliances and so on. Why would companies increase, their number of product offerings?
Doing so will definitely maximize their reach and, because they have built a reputation already, it would be
smarter to capitalize on their customers’ trust and confidence. Basically, people respond affirmatively to
brands which they have previously acquired; hence, when the same company attempts to expand the
number of product items they are currently selling in then market, most likely their patrons might become
interested to try the brand. It can be considered that half of the company’s battle in winning customers is
already won when the brand was able to establish a positive impact in every customer’s mind while nether
half is for the new brand to prove its worth.
Addition of new items to a company’s product lines is referred to as product line extension. This
marketing strategy being used by many companies allows them to experiment plunging into new market
segments which may range their current market going to a bunch of young urbans, or a group of middle-
class professional or perhaps to even mature markets like the aging populace. Dealing with this diversity
will be a lot easier for companies who have sustained a well-thought-of status quo.
The Product Life Cycle and Product Life Cycle Management
Products are biological organisms. When they are introduced in the market, they grow, mature and
eventually decline. This life cycle concept could be sudden to a number of products but could also be gradual
to some depending on the amount of company support and strategy given to each product.
During the introduction phase of the cycle, a new product may capture the interests of an overly
interrupted market, through the use of massive marketing campaigns and promotional activities. Companies
should consider producing quite a number of products to make them highly visible in almost major channels
or outlets. In this phase, profit is expected to be basically low since the product is just beginning to gain
market recognition. As consumers gradually try and adopt the product, so as growth in sales could be
expected; this is the second phase of the cycle. Therefore, companies may loosen up a little in their conduct
of marketing and promotional activities while anticipating an increase in their profit margin. The challenging
phase of the product life cycle is the maturity stage. As the product matures and gains favourable consumer
acceptance and market share, it becomes an attractive brand amidst the highly competitive environment.
Thus, the entrance of competing brands may start thriving and this may signal the company to
initiate remarketing the brand. Some strategies may include price reductions, increasing product quality or
adding product features, intensifying product promotions and the like. This may prevent immediate decline
and may save the product from its early demise. Sad to consider yet product may weaken, in terms of sales
and its potential to attract more reliable customers. This is the last phase of the cycle. This is very true
when the product has several substitutes and that new product entrants with better value have started to
mushroom in the market. Given this institution, the company may embark such careful actions including
dropping the product in the company's product mix and altering the product thru value addition or
increasing market coverage. Selection of possible action should be after the management's cautious
evaluation of the anticipated costs and benefits in any of the option stated.
The product life-cycle concept is of no doubt very useful to the sustainability of the product and the
management in general. The use of this concept may influence the general perspective of the management
in terms of marketing planning. When applied with sound judgment, product life cycle concept may be used
by managers as a powerful guide in forecasting, pricing, promotions and product planning and
development.
Market-driven Product Planning and Development Process
In a competitive environment, a climate of innovation and development should remain an absolute

consideration if the management wanted to stay relevant to their customers whose needs and preferences
are never static. Planning initiatives for new products is a glaring concern of innovation.
Product planning and development poses numerous firms. First, it is a competitive weapon in
boosting the rate because of its attempts to introduce additional the company's current product lines or
modify an existing its quality, size, design, color, packaging, shape, price, etc.
Second, it serves as a starting point of marketing planning. Product planning is a prelude in the
successful preparation of the entire marketing program of the firm.
Third, it is indeed a strong indicator of the company manager’s managerial prowess. It is from
careful product planning that managers could draw sound decisions from several arising matters such as
whether the product could really address the expectations of the target market; whether it will ever satisfy
or exceed that expectation requirements; whether their target market will be willing to pay the price for the
product ; and most importantly, a question whether the company could reach their desired profits from this
undertaking? These are just few concerns that have to be validated before coming up with an affirmative
decision whether to proceed with marketing new product or not.
Fourth, product planning is an important way to fulfill the social responsibilities of the business. In
Carroll's Pyramid of Corporate Social Responsibility the lowest level of the pyramid represents the first
responsibility of a company, which is termed as economic responsibility. This means that as a legal, profit-
oriented entity, they are expected to profitable. In the case a firm shall remain profitable, the society will
benefit from it, in general because it is from there that the source of livelihood of the employees is derived;
and when many people are earning from their employment, imagine the bountiful affirmative effects it will
bring to the entire nation. Hence, the lucrativeness of the company's operation lies in the deliberate
decisions of the managers more particularly in the areas of product planning and development.
Categories of New Product Strategy
Experts were able to develop useful definition of what new product means using different categories:
1. New-to-the-world products. These are products that came from recent inventions. They are
basically from the breakthrough of technologies and the science of knowledge that the company
has to painstakingly study where and to whom they will market such. Examples of this category are
Polaroid cameras, iPod and iPad, laser printer, Nike's self-lacing shoes and so on.
2. New-to-the firm products. These products are no longer new to the world but are anticipated to
bring the company into new category. This is one form of diversifying which is commonly decided by
the management in order to boost profitability and gain sustainable competitive advantage.
3. Addition to existing product lines. It is when a well-known brand brings out variation of its product
in terms f its size, color, scent, flavor and so on. One good example of this is Coca Cola, a
worldwide giant manufacturer if soft drink and is also a manufacturer of other related beverages:
energy drink, bottled water, tea and coffee products, fruit-based beverages and so on.
4. Improvements and revision of existing products. These are existing products in there
marketplace where one or two of the product features are modified or enhanced making them more
competitive, appealing to customers and deliver better value. Typical example is an ordinary body
lotion which is improved with ingredients that give UVA, UVB, or SPF protection.
5. Repositioning. Every product has a position statement that is unique for each of them. This is what
the company likes to convey in the minds of customers often placing emphasis in the superior
attribute of the product. For example, sales of Zonrox bleach increased fitter the company educates
the public by promoting the idea that other than using it as a laundry bleach for white clothes, it is
now a multi-purpose bleach for home and laundry. Even more, when they added and positioned it
as Zonrox Color Safe Bleach that is gentle in cleaning-color clothes.
6. Cost reductions. These are products that have replaced existing ones in a product line but have
given customers an assurance of similar performance but at a much lower cost.
New Product Planning and Development Process
The planning and development team has to craft a good story pertaining to what, where, why, when,
who and how of the product. This part should not be rushed, if not consequences be severe. It is as if the
team is trying to fill in a certain void and once certain, they may begin to understand and figure out the
potential of the product. Figure 5.2 illustrates how planning team begin figuring out new product's potential.
A thorough product planning and development must be done following the significant steps below
before a company could design an effective marketing program and a successful product launch.
1. Customer needs analysis. Understanding what requirements the customers have for a product or
services is one important approach so as not to derail the whole plan. This research-based technique
will help companies to identify customer’s true needs and wants and this will make them meet
customer’s expectations and design product or service the will solve their needs.
2. Idea generation. This is basic brainstorming where all ideas no matter how small or big, brilliant or silly,
should be entertained. From these raw ideas, either from internal or external sources, may sprout one
most potential and feasible idea which the planning and development team may miss should they
screened ideas early this stage.
3. Screening ideas. This is the stage where the team has to carefully eliminate ideas that have been
gathers for new product that maybe are not in line either the expertise of the company; or it may not be
profitability marketed or ideas that will entail much resources of the company.
In the screening phase prior to reaching a decision, the planning and development team may consider
evaluating certain risks that may be associated with picking the not-so-potential new product idea.
a. Strategic risk. This classification pertains to picking a new product idea that may jeopardize the
organization later on or because the team failed to consider the specific strategic priorities of the
organization. Hence, going on with the idea may require the organization necessary resources for
one radical new product innovation.
b. Market risk. The risk attached to new product wherein the value-added or any differentiation
attributes are not marketable, not matched with customer requirements. This may be due to the
sudden shift in technology and changes in the social environment.
c. Internal risk. This risk pertains to the possible limitations of the organization to transform the new
product idea into a fully commercialized item within the desired time and budget. Level of
commitment, managerial capacity and the like are some of the reasons for this occurrence.
4. Evaluation of Prototype. After the most potential new product idea is selected, the team translates
this into its tangible form through what is referred to as prototype. A prototype takes the form of the
original piece which will undergo testing and evaluation both by Its designer and the clients to confirm
the viability of the design, attributes and so on; and to assess whether further refinement is still
necessary. A Focus Group Discussion (FGD) may be done to gather information from participants on
issues regarding the product's functionality, safety, government regulations and the like.
5. Business Analysis. A new product idea that has survived the screening phase needs to
undergo a thorough business analysis. This phase covers the determination of the costs
involved in the new product and forecast the profits the organization is supposed to make in
the future. Important part of the analysis is the determination of sales volume, possible break-
even point and scope of the company's marketing strategy.
6. Product Development. This is the engineering stage of the NPD wherein after the product has
meet all the expectations of both the designer and the clients, it becomes a candidate for further
research, testing and conversion into finished good.
7. Market Tests. The company's top secret now goes outside and be subjected to customer approval
using the test marketing approach. The company selects a controlled environment- a contained
geographical area. This selective approach is cost-effective since the company monitors feedback
and results from selected sample respondents at least costs. Another good outcome from this
phase is the chance of identifying appropriate marketing mix for the new product's future use.
8. Commercialization. The final stage of NPD wherein the company boldly reveals the brand or item
into the marketplace. This is the launching step that will test the planning and development team's
exerted effort in perfecting the new product's design, attributes, packaging, and commercialization
and so on.
Table 5.1 presents the case of McDonald’s Corporation, an America fast-food company. This will give
justification on the significance of new product planning and development initiative in creating a good
product story. This process could also bring out product strengths and potentials leading to the
organization’s effective marketing program and product launch.
Why new Product Fails?
Organizations should be mindful of the agonizing truth that 80% of new products introduce
annually in the market suffer product failure, and even products who have been in the market for five
years, 56% of them are still in the brink of failures. Let us study some of the reasons why there were
new products that were not able to create a spark in the sight of the customers.
1. The product offers no profit-of –difference at all. Certainly, incentives drive customers’
enthusiasm about a product. Anything that is ordinary and usual to then bores them. Hence, if a
newly launched product does not possess any difference from other product that are already out
in the marketplace, then there is no point that they will need to shift from old brand to the new
one.
2. Limited retailer support. Retailers are among the company’s most significant business allies.
Once loyalty was established between a brand and its retailers, companies may worry less as
regard to the in-store movement of their items. Yet, in the event that the brand was not able to
gain its full retailer’s support, this may be one of the reason of its failure.
3. Poor product design. The team had perhaps done well all the necessary planning documents;
however, during the development phase and when decisions for the final design were made, it
had not turned out as planned, producing a poorly designed output.
4. Weak or poorly executed new product launch. The degree of promotional support should be
intense or high for every new product launch because the product is trying to create noise and
appeal from a highly interrupted market; yet if the organization fails to consider providing enough
or reasonable amount of promotional support, then the growth of the new product is less likely to
happen.
5. Aggressive competitors’ action. One of the threats being hurdled by industrialists in a free-
enterprise economy is the unrelenting aggressive actions of competitors. Their aims are to
maintain their guard on new entrants or any product substitutes and to topple competing brands
using varied marketing tactics. When the NPD team did not ready themselves with necessary
measures, new product launch could be a failure.
6. Small target market. As the market gets overly crowded, most business have learned to
appreciate the idea of finding their own niche markets as part of the modern strategic marketing
moves. Yet, one of the drawbacks of niche market is the size of the market which is relatively
small. Clearly a small target will generate less sales volume and is les financially viable.
Branding and Brand Equity
Competition and empowered tech-savvy customers, who can check and compare brands in a
matter of seconds, are just two of the most threatening conditions faced by companies today. And as the
business environment gets fiercer, struggling to get attention from a highly interrupted market becomes a
primary concern; thus, creating a company identity that is more than just a logo or a name should be
established to ensure that your brand will never be overlooked during the customers' critical research
phase.
Basically, a brand is a product, service or concept that is publicly distinguished from amongst in the
industry. It is often expressed through the use of either a unique design, symbol, word, mark, sign or a
combination of any of these. When the organization seeks exclusive rights and protection of its brand name
against unfair trade practice such as misuse, illegal reproduction or other acts of patent infringement, they
should pursue registration of the brand name in the Intellectual Property Office of the Philippines
(IPOPHL)13. This results to a registered trademark or a legal brand name, which the company shall have the
liberty of exclusive usage within a given period of time. A good brand name can evoke feelings of trust,
confidence, security, strength and many other desirable characteristics. To name few examples of brands
with strong and trustworthy characters are Colgate, Coca Cola, Safeguard and the like, which are top-of-
mind brands.
Developing a branding strategy is a crucial decision for top management. It serves as the blueprint for
marketing tactics. An effective brand strategy establishes bond or even emotional connection between the
customers and the company. Once the brand is positioned correctly in every target market's mind, then it
would be easier to instill a command - telling customers to choose your brand over others in the competition.
Decisions for branding strategy may start from two general options; either decides to use manufacturer's
brand name or private brand (store/distributor's brand). These two general options provide generous benefits
to the brand and the organizations. The use of a manufacturer's brand name is a branding strategy wherein
the producers themselves opt to assign their own brand name to their products. The benefits it could give to
the brand is the transfer and use of the company's goodwill; ease of monitoring the brand's sales and
performance; direct control in the execution of marketing tactics as well as its distribution channels and a lot
more.
It is undeniable that the manufacturer's branding is a predominantly used strategy by companies in

carrying out market and product development strategies. There are different approaches under this category.
Brand extension strategy occurs when a company decides to stretch the use of their current brand name to
label any newly introduced and related products in their product mix. For instance, Bench Company contains
numerous brands in their product mix yet they use brand extension name for their products like bench
perfume, bench body spray, bench apparel, bench footwear. Colgate toothpaste has also used the same
brand name in introducing the company's toothbrush and mouthwash; Unilever has also taken advantage of
its brand name Ponds when they used the same in promoting Pond's cold cream, Pond's lotion, Pond's talc
and Pond's facial wash.
Another approach is family branding, also known as umbrella branding, which is common for
organizations that attach their corporate name to a product introduced as either a new market segment or a
different product class. Family branding aims to classify numerous products under the name of its parent
brand. Let us take a look at the strategy done by Apple Ink., a globally renowned brand in the field of
electronics. Noticeably, their products are introduced in the market under its corporate brand name, some of
which are as follow: iPhone, iPad, iPod and Apple iWatch. In this kind of strategy, the company enjoys
cheaper costs of market entry since introduction of new product is attached to the image and goodwill of the
company.
Companies may also choose giving different brand names to every product in their product mix. This
is known as individual branding or multi-branding strategy. This strategy holds rational benefits such as
allowing each brand to succeed or fail on its own merits without sacrificing or impacting less the company's
other products. Procter & Gamble is another global company that has taken advantage of the use of this
strategy. For the longest period, they have nurtured successful brands in the industry such as Pampers,
Gillette, Whisper, Vicks, Pringles, Tide, Ariel, Downy, Pantene, Head & Shoulders, Olay, and a lot more to
mention.
Other general option in branding decision is whether to allow relatively big retailers to use their own
private brand for a specific product they have outsourced from a manufacturer. These retailers do not
manufacture these brands nor have any knowledge about the underlying technologies and processes of
such and yet they are entrusted by the producer to assign their own name on the brand for some rationale
reasons like the possibility of a much wider and established retailer's market coverage for the brand. In this
situation, the manufacturer is assured of a sustainable volume of production; manufacturers are also able
to save marketing costs for the promotions and campaigns of the product aside from saving administrative
costs such as the maintenance and rental of physical or display stores.
Regardless of the branding strategies that are available for the consumption of the companies,
managers should not set aside the main purpose of brand name- that is to create a well-received brand
with solid brand equity. Brand equity can be viewed as the set of assets (or even liabilities) linked to the
brand that adds (or subtracts) value to the product itself14. The value of these assets is dependent on the
kind of bond or associations established by the organizations in the minds of the target customers. Positive
associations or positive brand equity is not developed overnight. It is a product of the company's
commitment in the conduct of activities that inculcate brand awareness, brand association, brand's
perceived quality, brand loyalty and other brand assets including its patents or trademarks, channel
relationships that hamper possible black propaganda from competitors. Keeping solid, strong and positive
brand equity promotes profitability and growth to the company. Companies who are able to manage such
value enjoy the freedom of diversifying and extending product lines with fewer obstacles.
Let us consider the stories of some global companies where brand equity has increased the
likelihood that their new product, as it was associated with an existing one, will become a successful
brand15. According to a consumer case study about Starbucks, a global brand, customers choose their
brand of coffee over others primarily because of two reasons: quality of their brands and goodwill of the
company. Starbucks is rated as the fifth-most-admired company in the world by Fortune magazine in 2014
for its high regard and pledge to social responsibility. With more than 28,000 stores around the globe in
2018, Starbucks remains the largest roaster and retailer of Arabica coffee beans and has specialty recorded
coffees. Moreover, Coca Cola, another global company, has a recorded brand value of $57.3 billion in 2018
and often rated as the best soda brand in the world. Their laudable performance more importantly, the
company is a symbol of positive experiences, a proud history and their unique marketing campaigns have
infused global impact and even enduring consumer engagement.
Packaging
This is another product differentiation strategy under a relatively homogenous product. It is an

effective sales tool as experts believe that an average consumer judges first the product packaging before
its contents. Figuratively speaking, packaging is a silent salesman in the shelves. Thus, marketing
managers must consider the value adding features of packaging other than simply protecting the product.
A good packaging has the strength to create its individuality and recognisability when compared to
competing brands. Features of good packaging are as follow:
1. Unique and handsome design that has the influence of pulling customers towards buying the
product; it is advised that constant redesigning of packaging be observed to make the product
more appealing and relevant despite changes in the business environment;
2. Provides convenience to users, not too heavy nor too big for its size; easy opening is another
consideration;
3. Security of the products from dust, light, spoilage, damage, evaporation, etc.;
4. Adaptability to be stored or kept in various places such as cabinets, shelves etc.;

5. Dependability of the packaging as it is associated to the customers' impression about the
company; and
6. Status or prestige as reflected in the customers' sense of confidence in every purchasing act.
Though fulfilling the basic functions of packaging such as convenience, protection, product
positioning and product promotions are the top most priorities in product planning, marketing managers
must also consider the repercussions of charging too much costs on product packaging to such extent
that consumers are no longer willing to purchase it.
Pricing and its Objectives
How to price the company’s products or services correctly is among the most crucial and
complex decision confronting every firm. Experts believe that it can make or break any product or
service offering. Indeed, price is the only revenue generating element amongst the Ps in the
marketing mix and the best being cost centers. Also, price is deemed to establish a strong and
powerful brand equity since it influences the perception of the customers in making a purchase.
Customers often equate value satisfaction to the price of an item because from their point of view,
value is the sole justification of price. Essentially, once exchange takes place, simultaneous
appraisal by buyer and assessment on the psychological worth of a product happens. This kind of
assessment has long term effect on the product’s performance hence marketing managers should
be much concerned about this factor.
It is important to note that every pricing decision should be well aligned with the overall marketing
objectives stemming from the overall objectives of the company. Generally, firms operate in the culture
where the primary aim is to maximize returns and to sustain it in the longest term. Pricing also supports
the attainment of some specific objectives such as:
1. Achieve the financial goals of the company specifically their target return on investment in order
to support all plans of the organization;
2. Match the expectations or requirements of the target market in a specific product line;
3. Achieve the desired market share;
4. Stabilize the growth rate of the product;
5. Help recover the high costs of research the product; and development and incurred during the
development stage of the product; and
6. Induce more purchasing activities from target customers.
From the standpoint of the marketing managers, as Graham (2017) purports, the best motivation
is the fact that the target market is affirmative and is prepared to pay the price. But nevertheless, a good
pricing strategy would be the one which could balance between the price floor (the price below which
the organization ends up in losses) and the price ceiling (the price which the organization experiences a
no-demand situation). Other than this context, it is but important to get a deeper understanding of the
commonly practiced pricing approaches in the industry.
Pricing Strategies: How to price your product effectively?
In a general sense, firms rely on the price they charge to their products or services for them to
continue in operation for a long term. But marketing managers must make sure that it should be a balance
between the cost of production and the product value. It would be better though that value to customers is
higher than your costs. Below are other considerations in pricing your product effectively:
1. Cost-plus pricing. This is related to mark-up pricing in which the costs of producing a product or
completing a project are accounted after which a profit amount or percentage referred to as mark-up
is added prior to getting the selling price of the product.
2. Price Skimming Strategy. This strategy is commonly used in setting prices for newly introduced
products in the market. This can be liberally used when there are few competitors in the market and
when the product has distinct competitive advantages over similar products. To encourage more
customers to purchase a premium priced product, it is important for a company to totally justify their
claim; hence, they need to synchronize their marketing efforts, product strategies, i.e. packaging and
labeling, even augment the store layout design and visuals to support the image that indeed the
product is worth its premium price. In addition, this strategy also offers lots of advantages such as
the chance to maximize company's profits; to recover the high research and development costs
incurred; and it offers flexibility since price adjustments can be easily done, without affecting the
desired profit margin, when the product was not able to gain favorable acceptance from the target
market.
3. Penetration Pricing Strategy. This is also applicable to newly introduced product in the market
wherein prices are set lower than those of the competitors. Doing this allows the firm to achieve
a stronger market penetration quickly, thus, achieving their desired market share within their target
period. The advantages it offers is its ability to survive in a highly competitive market; gain customer
loyalty; and encourage brand switching. Though it may result in losses for the company at first, but
marketers expect to recuperate once product sales start to mount.
4. Psychological Pricing Strategy. This strategy is sometimes called as "charm pricing". Researches
proved that odd-priced products or products ending in odd numbers particularly the number 9 create
an impression that products are better priced than those ending in even numbers like zero. For
instance, brands that are priced at Php 19.99 are more charming than pricing it at Php 20.00; thus,
customers are easily convinced to pick the latter because for them it is a better deal than that of the
former.
5. Price bundling Strategy. This is a common retailers' practice of putting together a set of products
at a price lower than what is conceived to be higher when bought separately by the customers.
Classical examples of this bundle pricing are the practice of most fast-food chains where customers
pay a value meal which is a combination of rice, a piece of fried chicken or any viand and a cup of
soft drinks; or could be a set of fries, burger and soda. Savvy marketers are taking advantage of this
buying behavior. Basically, most customers love to purchase products in groups because for them it
offers greater value than buying in separate item. Other reason is that a single-purchase act allows
them to save time, cost and effort. Certain drawbacks for this strategy are also noted though. These
include the stringency of purchasing only what the customers really want during a specific
transaction; giving some discounts for the bundled product or service may probably lead to
decreasing revenue for the company; and that discounted price may create a negative impression
about the product from its customers.
6. Follow-the-leader Pricing Strategy. When a newly introduced product by a less competitive

company was out in the marketplace, one of the options that the manufacture may take in pricing it
is follow-the-leader pricing. In this strategy, the company sets their price based on the price of the
market leader. And any price adjustments done by the market leader also results to the same act by
the market follower.
7. Product line Pricing. This is a method of pricing several related products that are sold separately
but within a certain range of prices. For instance a café that offers classic Filipino fovorites breakfast
“Silog” meals consisting a fried rice, egg served with a viand either beef tapa, ham, hotdog, pork
chop, fried fish etc., sell individually any of these variants at a price of Php 85.00 only.
Influences in Pricing Decisions
Several factors should be laid down clearly and deliberately prior to making price decisions. The
influencing factors could be divided into two broad categories: the internal and external factors.
1. Internal Factors. These are factors in which the management has control over - phenomena, which in
the capacity of the management, can be altered, modified or redesigned, as cited in the first chapter,
so as to arrive at an effective pricing decision. These include:
a. Company objectives. This factor has a powerful influence in the company's product pricing
decisions. Needless to say, policies on pricing should be in conformity with the predetermined
outcomes of the organization. If higher profit margin is set, then prices should be made to meet
its expected profit margin, yet if competitiveness and sales growth are at stake, then
modifications can be done.
b. Company structure. The arrangement that constitutes an organization has also a greater role
to play in crafting pricing policies for their product. There are organizations that give full authority
to their top management in pricing decisions while others allow the participation of their
employees and other stakeholders.
c. Marketing Mix. This is a business tool designed by the management for the smooth execution
of their marketing program concerning the core elements of marketing: product, price, promotion
and placement strategies. This is unique in each and every organization depending on the
range of their objectives and in coherence to the organization's norms.
2. External Factors. Conversely, these are elements in a business environment in which the
organization has no control over. No amount of alteration or modification can change the situation,
yet the management may have the prudence and proficiency to make these elements work for their
advantage. These include:
a. Demand. This primarily concerns with the nature of the target market which may
directly influence pricing decisions. This ranges from understanding the demographic
and psychological factors related three. Demographic factors include awareness
regarding the location of the potential buyers, their economic strength and so on. On
the other hand, psychological factors would mean investigating about the behavior
and the perception of potential buyers.
b. Competition. Price makers may have a thorough review on the possible reactions of
the competitors as regard to the company's pricing strategy mainly if it involves
homogenous or identical products; the strengths and weaknesses of competitors,
possible new product entrants and more. On top of everything else, the management
can still select a pricing strategy that will support the attainment of the company's
objectives.
c. Political and legal. These are state regulations and other interference that may
hamper the decisions of the management in terms of pricing. Conformity to these will
safeguard companies against possible lawsuits or complaints. Government rules
cover matters regarding price fixing, deceptive pricing, price discrimination, predatory
pricing and so on.
Why Product Strategy is Market-Driven?
All great products start with a clear strategy that is customer or market-driven. In today's volatile
market and an era where customers are in control of their buying experiences and companies are better
equipped with superior customer service design, providing superior value to customers must be the utmost
company's commitment. A market-driven approach uses business decisions based on market facts. It is
when the management is serious about committing all business functions work in harmony towards building
great consumer experiences that result to customer satisfaction.
But in a hyper-competitive environment, satisfying customer may not be enough to make

them a reliable one. Delighting customers is now the mantra of modern business nowadays and
one of the important characteristics of market-driven business model. Why shift to this business
philosophy? Because experts’ statement about incurring higher costs, in attracting new customers,
is a much as 7x more that the cost of retaining an existing one, still remains unchanged. Therefore,
if the management remains committed in this customer-focus culture, then it may bring such a
fortune for the organization since the customers are the organization’s best advertisements yet
they could also become their loudest detractors/ definitely, customers who have had a great
experience about a certain brand will share the story with others which can be amplified to
thousands of new potential customers.
The mere concept of customer delight is not just the provision of satisfying brand experience but
adding some element of surprise in every brand experience. The surprise-and-delight technique is rooted in
consumer behavior theory. Given the fact that the customer has already expressed enough interest in buying
the product, taking advantage of that desire, by offering them something extra after the transaction could feel
like a bonus that will bring them straight into the realm of delight. Moreover, the theory explains that the most
popular campaigns for this technique as follow:
1. Personalized offers that are sent occasionally through direct or electronic mails and contain
exclusive offers can motivate repeat sales.
2. Exclusive events. Indulging loyal customers with a gift or a remarkably, too-good-to-be true
experience creates stronger bond between them and the company.
3. Random acts of kindness. This is the best campaign for brand customers such as providing
them superior customer support system, great in-store ambiance and accommodation are a sure
win for the organization.
EXPLAIN: Review Questions
INSTRUCTIONS: Discuss the following activities.
1. Applying the New Product planning and Development process, select one product from the
company’s array of product line or product mix. Assume that the selected product will undergo
product management.
2. Perform the following activities:
a. Consider your choice of product or service design needs to undergo improvement or
enhancement to further position the product planning and development. Write down the details
in your journal.
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
b. Provide description details about the newly introduced product/service design: something that
will improve the brand equity of the product/service and will deliver great shopping experience
.__________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
uestions
TOPIC SUMMARY
In this lesson you have learn that..
To realize the company's objectives, products brand equity must be established first. the vehicle in
which the company enjoys Therefore, organizations should have kind of perceptions they would like to by
offering relevant line of products in understanding the relevance of your segment, your team should have a
clearer view and characteristics. Your company may decide tangibility and intangibility. This means, of
product's tangibility and intangibility, may be bundled with a service or vice versa in order to heighten the
brand equity. Moreover, other than being bundled with service or product component, goods may be
classified under the two main categories such as consumer goods and industrial goods.
But regardless of their nature, characteristics and classification, it is undeniable that every product
is a biological organism which means that they have birth and may eventually suffer death of natural form.
This refers to the product life cycle that includes the introduction stage, growth stage, maturity and decline
stage. Hence, proper product life cycle management should be in place in order to safeguard and sustain
the life of each product in our product mix. Managing product life cycle requires sound judgment of
marketing and product activities that include pricing, promotions and product planning and
development. Becoming responsive to market demands is the challenge that every manager should work
into. But staying relevant in today's hypercompetitive environment would mean that management is open
for changes and new opportunities such as planning and developing new products (NPD). NPD should be
in consonance with the company's objectives of offering new products that fall in these categories: new-to
the-world product, new-to-the-firm, new additions to existing product line, an improvement of the existing
product, repositioning and for cost reduction measures. Any venture that the organization opts to take
should adhere to the new product planning and development process commonly applied in the industry.
Yet, management must learn not to be complacent upon their offering of the new product in the
market since 80% of the newly introduced product annually suffers product failure due to factors like limited
retailers' support, poor campaigns, aggressive competition and so on. But then, establishing a strong brand
equity could delay products in the brink of failure. Brand equity can be viewed as the set of assets (or even
liabilities) linked to the brand that adds (or subtracts) value to the product itself. Companies must strive
building positive customers' perception about the brands. This is possible if elements of brand equity are
present such as brand awareness, brand motivation, brand perceived quality, brand loyalty and other brand
assets.
On top of the NPD and brand equity, unique and innovative packaging is another requirement in
creating great customers' experiences. Packaging is deemed to be the silent salesman on the shelf.
Therefore, your team must be able to take heed of the following essential features of a good packaging such
as: unique and handsome design that could pull customer to buy the product; convenient to users; security
of the products against damage, spoilage, etc. adaptability to various storage areas; dependability of the
packaging to gain good impression from customers, and prestige.
Further, pricing is another critical factor to be decided upon by the management as it is believed that
price could make or even break a product. Pricing is considered to be the only element among the elements
in the marketing mix that is revenue-generating and the rest being cost centers. As pricing decision is
deemed crucial managerial task, it is imperative tht the price should not cause confusion to customers vis-a-
vis giving focus to the real value of the brand. Hence, a market-driven concept is the best antidote during
this time of hyper-competition and customer empowerment.
REFERENCES
REFERENCES
1. Banaag, Francis A., et. al. Strategic Marketing Management ., Unlimited Books :Library services
&Publishing INC. 2018
2. Nava, Girly H,DBA., Strategic Marketing Management Simplified Moves for Rookies.,
MINDSHAPERS CO, INC. 2021.
3. Retrieved from: , https://www.freepik.com/free-photos-vectors/marketing-analysis, Retrieved on
February 23, 2023.
1. 1.
Lesson 2: Essentials and types of Marketing
Communications
SPECIFIC LEARNING OUTCOMES
In this lesson, you should be able to:

1. explain the concepts of Integrated Marketing communications in crafting and effective promotion
mix specifically advertising campaigns;
2. explain the importance of property coordinating sales promotion strategies with other IMC tools
for better results;
3. describe , advertising: Planning and strategy; and
4. identify and explain element s of sales promotion.
PRE-ASSESSMENT
TRUE OR FALSE. Write T if the statement is correct and write W if the statement is wrong.
_______1.Maintaining a consistent level of competitiveness in a highly dynamic business

environment is among the toughest challenge that top management has to hurdle.
_______2.Awareness is the initial step in order to stimulate trial purchases.
_______3.Marketers of today have identified the four facets of marketing communications which
companies often use in instilling brand awareness ,brand recognition and brand loyalty and
thus allows meeting consistent sales volume.
_______4.Each element in the promotion mix has limitations and necessitates perhaps more or
less higher promotion costs.
_______5.Advertising is a paid form of non-personal communications that enables to deliver or
send the message to as many potential customers as possible.
_______6.Publicity is the popular form of public relations. It is a non-paid form of advertisement
wherein the typical message is about the reputation of a company including their products.
_______7.Direct marketing uses direct forms of communication with customers through a variety
of print or electronic medium such as online marketing, catalogues, telemarketing and direct
response advertising.
_______8.Business evolves dynamically as prompted also by the fluidity of the market,
competition and the industry in general.
_______9.The goal of integrated marketing communications is to develop marketing
communications program that coordinates and Integrates all elements of promotion - in order -
advertising, to come up sales with a promotion, consistent brand message.
_______10. It is firm in delivering a unified message through various channels o0and thus,
has better chances of attracting customers.
LESSON MAP
Integrated marketing Communications
Essentials and Types of Marketing Communications
integrated Marketing communications
Developing the Integrated Marekting /communications and its Importance
components of a Succesful Integrated Marketing /communication
Advertising:Planning and strategy
advertising Decision
Advertising Expenditures
Sales Promotion
Public relations
Role of Public relations in Marketing
Direct marketing
Figure 1 describes the flow integrated marketing Communications
CORE CONTENTS
ENGAGE: Image Analysis
Base on the image above give your analysis in one paragraph.

______________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
EXPLORE: Reading Concepts
The arising challenge of communicating effectively to consumers due to the highly fragmented and
fast changing media environment affected both the way large to small companies allocate funds for
companies' marketing communication expenditures. They have felt the need to rely on advertising and
promotions to help them market their products and services in the consequence of obtaining companies'
goals and objectives. Interestingly, even customers have learned to also rely on advertising and other forms
of promotions for information gathering before making a purchasing decision.
Essentials and Types of Marketing Communications
Maintaining a consistent level of competitiveness in a highly dynamic business environment is

among the toughest challenge that top management has to hurdle. Business competitiveness can be
associated with various factors including strong market foothold and sales from a dynamic product line are
just among the elements of competitiveness. Marketing in the first place has a predominant role in getting
potential sales because it is one function in the organization that is responsible in turning customers into
potential buyers and making potential buyers into reliable ones or repeat customers as other term applies.
On the other hand, sales refer to all activities that lead to the generation of revenues brought by the selling
of products or services. It plays a pivotal role in the continued success of a business. Since marketing and
sales are inseparable, it is then important to note that to attain a relatively high and consistent sales
volume, a powerful marketing communications strategy must be in place.
Marketing communications is a business strategy that aims to create right messages for the
intended and potential customers using the right promotional medium within an ideal time frame in order to
satisfy the following intentions of the organizations:
1. To spread awareness among the intended buyers. Awareness is the initial step in order to
stimulate trial purchases. Naturally, consumers are excited about trying something new and
products that have repeatedly come to their consciousness.
2. To improve the rate of customer retained and strengthen the company's upselling activities.
Sound efforts to vitalize customer's continued engagement to the company and its brands may
result to retained customers who are perfect candidates for the company's upselling activities.
For instance, clients of car companies are their perfect market for car accessories and other
automobile supplies.
3. To build customer trust and loyalty. A strong marketing communications program warrants a pool
of loyal customers who are ready to make word-of- mouth advertisements or product referrals.
Marketers of today have identified the four facets of marketing communications which companies
often use in instilling brand awareness ,brand recognition and brand loyalty and thus allows meeting
consistent sales volume. This includes advertising, sales promotion, public relations and direct marketing;
while many organizations have started maximizing the benefits of online media. These are also the same
promotion mix elements that are considered as non-personal forms of communication and will be discussed
in the succeeding topic.
Promotion Mix
Each element in the promotion mix has limitations and necessitates perhaps more or less higher
promotion costs. Therefore, experts in marketing see a rather favorable or rewarding results if companies will
mix these tools or elements together- making the marketing program a holistic one. The promotion mix
model is a combination of both non-personal and personal types of marketing communications so as to
reach potential buyers, reach desired sales volume during a specified period. The non-personal elements
under this model include advertising, sales promotion, public relations and direct marketing; while the sole
element under the personal form of communication is personal selling. Details of these tools are discussed
below:
1. Advertising is a paid form of non-personal communications that enables to deliver or send the
message to as many potential customers as possible. Indeed, among the elements, this has the
wider range of coverage that speaks about the percentage of audience that was able to see your
advertisements; and a good frequency that refers to how often does the target audience could see
the advertisement. Advertising messages are transmitted using various mass media, such as
television, radio, newspapers, internet, magazine and other outdoor advertising medium. Advertising
can be perfectly used by companies as a means of informing mass markets pertaining to the planned
conduct of any sales promotion events or activities.
2. Sales promotion is a non-personal marketing communication tool that is basically short run by
nature and conducted in the form of coupons, holiday sales, special sales events, contests,
premiums, discounts or other deals aimed at increasing sales by inducing target buyers to buy in
volume or to buy as often than their usual buying intervals. This element works best in intensifying the
personal selling efforts of company personnel.
3. Public relation is another non-personal form of communication that is strategic in nature as it seeks
to impact a positive influence to the attitudes, feelings, perception and opinions of customers and
stakeholders. Other marketing experts call this as a form of reputation building and management.
Publicity is the popular form of public relations. It is a non-paid form of advertisement wherein the
typical message is about the reputation of a company including their products. This is transmitted in a
form of news story, media coverage or press releases sent through mass media such as television,
newspaper, magazine or the like.
4. Direct marketing uses direct forms of communication with customers through a variety of print or
electronic medium such as online marketing, catalogues, telemarketing and direct response
advertising. This kind of communication is characterized by a more personalized message to a
formally defined group of customers. Basically, this personalized message directs recipient for a "call
to action" type of message.
5. Personal selling is a face-to-face communication with potential buyers persuading them to buy the
company's product. This is commonly done by a trained sales professionals or representatives who
are directly or indirectly connected with the company.
Marketing managers are challenged to come up with the perfect combination of promotion elements
to ensure that products or services will be well-recognized in the market. For example, to effectively promote
new product launch, automakers may opt to start introducing the new model through a television and print
advertisement along with the holding of a special event promotion to their target customers who will be
paying visits to their showrooms wherein visitors will be assisted by trained selling personnel to make the
persuasion easier by giving information that will feature the benefits that can be gained by the buyers. In
addition to that, the organizers may also invite media people who will cover the event and agree to release
the news story as part of company's publicity. This example presents a complete promotion mix which is
deemed to intensify the saleability of the product. Yet, it should be made clear that a firm's promotion mix is
likely to change over time to continually respond to changes in the market, competition, product life cycle
and the emergence of new product innovations. In general, the design of the promotion mix is influenced of
the product; by: (a) Company’s overall marketing objectives; (b) nature of the product; and (c) condition of
the market.
Integrated Marketing Communications

With competition becoming more intense not only in the global market but also in the local one, long term
survival amidst hypercompetition, adequately yielding profits and revenue for the organization and keeping a
stronger bond between the company and its modern mix of consumers has been every company’s ardent
vision.
Therefore, it is very fundamental for organizations to place great importance on initiatives that
establish strong brand communication. Brand communication is more than promoting products and services
to target consumers. It is the process that involves identifying who are the real target consumers who would
turn out to become "fanatic" brand users (fanatic in the real sense of the word since really, we cannot
undervalue the influence of these users, as they are ready to promote the brand to everyone). This is the
issue that Integrated Marketing Communication will try to address-to send the message of the company's
products or services loud and clear through the integration of the elements of marketing communications.
Business evolves dynamically as prompted also by the fluidity of the market, competition and the
industry in general. Thus, as it evolves, innovative models and approaches also were created just like the
presence of two well-known concepts in marketing - the promotion mix and the Integrated Marketing
Communications. Scrutinizing their nature, both of them are amalgamations of the various elements of
marketing, yet prior to the birth of IMC, is the continuous practice of the promotion mix by the different
departments or teams in the organization, is already prevalent. For example, advertising plans are prepared
and developed by the advertising department while sales promotion plans are independently or separately
prepared to the advertising plan; whereas the other part of the organization is the sales team being honed
by the sales managers as regard to the selling strategies the team needs. Indeed, this example presents
how promotion mix works in an organization.
On the other hand, the idea of integrated marketing communications is perhaps easy to understand
yet it necessitates proficiency and a great deal of coordination with all other teams in the company. The
goal of integrated marketing communications is to develop marketing communications program that
coordinates and Integrates all elements of promotion - in order - advertising, to come up sales with a
promotion, consistent brand message. This part makes the concept very critical since every product or
service got to plunge in a thickly crowded marketplace.
Developing the Integrated Marketing Communications and Its Importance

As stated earlier, this marketing concept plays an integral role to effective brand communication
especially when products or services are dealing with a relatively crowded marketplace. The simultaneous
blending of various elements that form an integrated marketing communication program is deemed to result
to an impactful connection not only for business-to-business marketing but also for direct interaction with
customers or the end-users. Basically, integrated marketing communication diverges from the traditional
ways of marketing from winning customers only to both winning and keeping them for the longest term.
There are other known advantages that can be derived from integrated marketing communication such as
the following:
1. It develops culture that places prime importance for customer feedback mechanism. Hearing out the
voice of the customers and keeping a constant dialogue with them provides the organization a sort of
an essential marketing intelligence as to what pleases the customers and how to keep them coming
back for the brand.
2. It is firm in delivering a unified message through various channels o0and thus, has better chances of
attracting customers.
3. It provides a wide range of innovative options in communicating to target audience, thus, saves
companies' resources like the amount of time, in figuring out the best marketing tools, and saving
marketing and promotion costs.
How to create an Integrated Marketing Communication Plan
Essential elements should be available for a much feasible integrated marketing communication program.
First, clear objectives provide a good jump-start in almost all undertakings. Objectives allow
companies to manage its limited resources efficiently such as proper alignment of them to areas of
great priorities.
Second is to plan out what specific, unique selling point you would like to deliver to your target
audience- something about the products or services' features and advantages that for them are irresistibly
sounding.
The third step is the conduct of thorough research. This step is deemed to produce ripple effects
that bring forth better outcome for the company.
Management Study Guide presents the following inclusions for this specific research
undertaking:
1. Detailed Marketing Plan with summary discussions as to how the company intends to promote the
products or services among target customers;
2. Background, history and vision of the organization
3. Summary of the products or services' essential feature including detailed SWOT analysis
4. Description of the target market. Identification and understanding of their minds and perceptions; and
5. Competitors' analysis including their competing products and activities. Marketing managers can
now start using the research results in preparing the integrated marketing communication that is
more relevant and responsive to target customers. Finally, the team must not forget to conduct
evaluation of the integrated marketing communication in order to do necessary adjustments or
enhancements of the project.
Components of a Successful Integrated Marketing Communication

Company's initiatives for integrated marketing communications can only be labelled successful if the
company can impress upon maximum awareness to a large number of end-users along with the end-user's
sense of attachment and loyalty towards the brand. Below are the elements that would bring in successful
integrated marketing communications program:
1. Customer focus. All efforts of the company pertaining to marketing communication should start and
end with customers- being the top priority especially in this undertaking.
2. Interdepartmental Cooperation. It is very vital that every department shall work hand in hand in
getting the company's predetermined goals. Just like the refined and careful amalgamations of the
elements of marketing communication, so too is the collaboration and coordination of every
department in resolving issues on this regard. This strategy would soon pay off as morale of
everyone will be boosted and everyone will feel the pride and ownership as they contribute to the
company's endeavors.
3. Database Communication. Since everyone in the department is given their part of the job, it is but
important that they shall be given the right to access all relevant information, data, figures required
for the successful implementation of the integrated marketing communication program. It would be
better if the management would be able to create communication paths that allow the sharing of key
information across various platforms.
4. .Leverage. Each communication channel has unique strengths and weaknesses. With this mindset,
each channel compliments another and tries to fill in whatever limitations encountered along in order
to come up with a cost-effective and superior result
5. Return on Investment. Prolific flow of revenue is one factor that sustains business existence and
the performance of everyone is a contributory factor on this. As integrated marketing communication
combines all marketing elements, every department in-charge should have common understanding
about the amount of profit that are expected from their output. And as mentioned, employees feel
good about themselves when they are valued because of the worth of their contributions to the
company.
Advertising: Planning and Strategy

One of the most important elements of an integrated marketing communications program is the
message created through advertising media. As discussed earlier, it is the most effective means of non-
personal marketing communication because of its reach and wider coverage even in a short span of time.
From the marketer's perspective, advertising message is a way to tell customers how their needs and wants
shall be met and be satisfied by the company's brands. When customers purchase and repurchase the
advertised products, firms are able to maximize their profits.
However, marketing managers must also be aware that advertising may be subjected to the law of
diminishing returns. The same idea applies with that of the economists' premise regarding this principle of
diminishing returns. In advertising, the same truth applies, which states that the more advertising messages
are added to the strategy, the less effective it becomes. Hence, it goes back to the same premise of having
a clear, concise and unified message across other marketing communication elements.
This then makes advertising works more complicated for the marketing managers. But learning how
to clearly showcase the campaign on its primary goal and stripping down the message into what is only
essential may save the campaign from an early diminishing state. Figure 6.1, the Advertising Ladder, which
has pointed out that successful advertising campaigns are those campaigns that are focused on selling
benefits and not mere product features.
Rapid technology advancement and how it brought huge change in the condition of every individual
had prompted profit organizations to respond squarely on the challenge. One perfect example of this is the
kind of empowerment that technology has given to all consumers. Consumers are empowered in the
sense that they now have greater control over what they want to see, how and when they would like to see
it. If advertisers will not move out from their traditional practices to a much modern approach in
communicating to target consumers ,like connecting the product to the personality or morals of the person,
then no advertising messages will be more interesting, entertaining and helpful that could drive a passive
consumer to act instantaneously. In relation to this, creativity in advertising is one effective strategy in
getting the attention of the target audience then driving them to make a purchase.
Importance of Creativity in Advertising. The term creativity turns out to be a very important
ingredient to effective advertising .It brings advertising message to life. Its artistic or aesthetic value and
originality are deemed to break the competitive clutter, and has the power to generate emotional responses
and positive feelings attached to the product or service being advertised. However, this should not
overwhelm the people who develop ads and commercials because developing ads that are creative only for
the sake of being creative has also drawbacks. It may fail to really communicate meaningful and intended
messages about the product or service that will cause buyers to make actions.
Experts suggest adherence to the two central determinants of creativity which are divergence and
relevance. Divergence refers to the novelty of the ad contents which means that the message is something
that is new and far from the ordinary type ever existed in any advertising platform. Divergence may be
achieved following five factors as follow:
1. Originality. Advertising copy and other ads elements should try to go out of mediocrity and the
mundane mantras of products or services that customers normally see or hear in different media
platform. It must be distinctive and a fresh of its kind.
2. Flexibility. The advertising concepts or ideas could be highly adapted and captured by a wider
scope of audience or even get to the interest of a small group of audience too.
3. Elaboration. The framing of the ads message is more detailed and intricate giving the target
audience clear understanding about features, advantages and benefits of the product or service.
4. Synthesis. A portion of the ads can be associated or blended to objects or ideas making the
advertising elements more truthful and authentic.
5. Artistic value. This pertains to ads containing artistic verbal impressions or attractive shapes,
designs or colors resulting to a strikingly big advertising message.
The second determinant of creativity is relevance. This refers to the degree wherein various elements
of the ads are developed to convey meaning and strong purpose and rationality why customers should make
a purchase. Relevance of the ad message may be achieved using the two different methods. Smith et al.
suggest the Ad-to-consumer Relevance and the Brand-to-Consumer relevance. The first refers to a method
wherein the agency's creative people can make use of a known celebrity or personality who may possess a
strong association to the product or service being endorsed; thus, capturing the interest and attention of the
target consumers. The second method can be done using an image or object that best represents the
product or service advertisement such as an image of a black luxury car that could form an impression and
attitude of elegance, style and sophistication.
Advertising Decisions
There are important decisions in advertising that every marketing manager has to consider in
designing a program or an ad campaign. Experts call this as the Five Ms of Advertising Decision' as follow:
1. Mission. There must be a clear and established goal in the conduct of an advertising campaign.
Mission statement is a better aid in guiding decision makers pertaining to the alignment of their
actions to the intentions of the organization.
2. Money or the size of the advertising budget that the organization is willing to appropriate to boost
and stabilize sales of a certain product or service. This decision is grounded on the fact that today's
most successful brands of consumer goods are built with heavy advertising and marketing
investments. The amount of money to be spent in advertising depends to the immensity of the
company's goals or objectives.
3. Message. Large amount of budget allocations does not guarantee bigger percentage of return but
getting customer's attention and communicating clear message does the work.
4. Media Mix. Media selection is no easy task. There are numerous types and combinations to choose
from and each of them presents their own advantages and limitations. Newspaper as a medium
commands the widest circulation and a good number of newspaper readers are in their buying frame
of mind already. However, newspaper does not possess the same prestige like that of the magazine,
as it is usually thrown away or loses its value after it has been read. On the other hand, the sales
message that is quite elaborate, in magazine thrives for a longer time as magazines are categorized
as among household's collections that are for safe keeping. However, magazine is intended only to a
limited and specified group of readers. TV as a three-dimensional advertising medium combines
sight, sound and movement, an advantage not offered by most other media. Yet, huge budget is
needed for TV ads to really be able to leave a strong and impactful message to target audience.
Transportation and outdoor advertising is another type of advertising media to choose from. It is a
fast-inspection medium and offers. good message exposure to a great number of people who are outdoor
almost every day. Direct-mail advertising is more personalized and targeted type of advertising medium yet
percentage of waste circulation is also high because it is harder to tell whether the recipient actually received
the message. Internet advertising also offers many advantages but also has limited capabilities. Thus, media
selection is a tough job for marketing managers. This process becomes even more complicated when the
manager has to choose between alternative within the same medium- for instance, between noon time and
prime time TV program or the Time and Newsweek, or Facebook and Instagram.
5. Measurement. Careful deliberation of the effectiveness of an advertising campaign or any advertising
effort is another important concern that should be given attention by the management. In so doing, it
allows the organization to save extra resources from spending on endeavours that give lower yields
or return; or in the case of a meaningful result, they could find ways on enhancing further their
advertising ideas.
Advertising Expenditures
In allocating resources for the organization's advertising activities, there are various approaches in
which the company could base their budget appropriation. Peter and Donnelly have the following means as
follow:
1. Percent of Sales. This is the simplest and most popular rule-of-1.umb method of allocating
resources for advertising expenditures. The organization can simply take a percentage figure and
applies to either past or future sales. For instance, the company was able to accumulate three million
sales on the previous year and should the company decide to plunge into their current year's
advertising program and decided to allocate two percent from the last year sales data. This warrants
them to spend Php 60,000 for their advertising activities.
2. Per-Unit Expenditure. Most companies use this approach to every higher-priced merchandise, such
as automobiles or appliances wherein a fixed monetary amount is spent on advertising for each unit
of the product that will be sold. For instance, a company may decide to spend a fixed amount of Php
500 per unit sold. This approach sounds the same with the percent of sales method, only that it
justifies the purpose of the company to strictly allocate a fixed advertising expenditure per unit.
3. All You Can Afford. This approach suggests that advertising expenditures should be limited only to
the firm's available resources or current revenues. Considering the rationality of this approach, his
can be an advantage on one hand. On the other hand, any firm that limit its advertising outlays to the
amount of available funds will probably miss opportunities for increasing sales and profits.
4. Competitive Parity. Every advertising program is one form of defense in response to any
competitors' push and pull promotional strategies. This approach may not be commonly preferred by
the organization yet managers or company strategists may feel the need to do so.
5. The Research Approach. Much has been said about the significance of research prior to the
conduct of any strategic activity of the organization. It provides rational direction to any strategic
undertaking hence lessening chances of futile actions. This approach provides costs estimates based
on the research results.
6. Task Approach. This is applied to a well-planned advertising program. Once advertising goals were
clearly defined vis-à-vis tasks needed to accomplish the goals, then it would be easier for marketing
managers to assign advertising costs
Sales Promotion
Sales promotion is another essential element in the integrated marketing communications that is
when merged with other elements, advertising, public relations and personal selling activities, will make an
effective IMC program. Belch and Belch talked about the marketing experience of UNIQLO, a Japanese
retail company, about how they were able to fully utilize the role sales promotion in the administration of the
firm’s IMC program.
Sales promotion has been defined as an inducement directed either for the sales force, distributors
or the end users in the form of an offering of extra value or incentive to every product or service sold or
delivered. The success story of UNIQLO in their use of varies sales promotion techniques is a clear
indication of the benefits of this element in the profile operation of the organization. Ideally, sales
promotion’s main objectives are sales stimulation and stabilization because of its ability to increase the
customer’s perceived brans value using varied kinds of sales promotion devices. Sales promotion activities
also vary according to the target parties in the marketing channel. It is grouped in two major categories:
consumer-oriented Sales Promotions and Trade oriented Sales Promotion.
1. Consumer-Oriented Sales Promotions. These are short-term sales promotion activities aimed at
targeted consumer groups attracting and prompting them to develop liking on the product or service
being promoted and eventually buy them. Consumer promotions could fulfil several organizational
objectives including consumer inducements to try a new product or to continue buying it; rewarding
loyal customers; encouraging them to purchase in large quantity or amount; prompting them to buy
as often as possible; providing defense to competitor's effort; and reinforcing all advertising and
personal selling initiatives. To accomplish the said objectives, marketers use variety of consumer-
oriented sales promotion techniques as follow:
a. Sampling. This is an offer given to consumers through a free product sample with the aim of
inducing trial purchase after a probable liking to the product has been established. This
technique works well under the following conditions: when the product under the campaign
program is of low unit value; products are available in different packaging sizes from its
largest to smallest size making it as an ideal unit for product sample; and when consumers
tend to buy the item within the shortest time of interval only such as buying a can of sardines
or the like. A study conducted by the Promotion Marketing Association found that the vast
majority of consumers receiving a sample either use it right away or save it to use some time
later
b. Couponing. This technique seems to be the oldest and most widely used sales promotion
incentive. It is the process of distributing coupons to consumers, which may take the form of
a ticket, document or the like, wherein the bearer of such has the option to redeem the
incentive (price reduction or discount maybe) within the specified time. Coupons target
nonusers to try the brand and for the current users to do repeat purchase or to continue
patronizing even the product's improved version.
However, many marketers have noted some drawbacks of this technique such as the tendency to
reduce the profit margin of the company since the purpose of attracting a large number of anew product
triers may not be achieved if most coupons will go to current users and least number of new ones; some
consumers could not be hurried to redeem the coupons at an earlier date other than its expiration date
hence may also slow down effects
c. Premiums. It is an incentive that comes in a form of merchandise or a service either freely

given or at a low price to reward consumers who have bought or patronize the brand. As
stated, marketers can choose between a free premium or a self-liquidating premium. Free
premium normally comes as a gift or extra incentive to patrons or buyers. Basically, it comes
in a smaller unit or package which consumers could avail in lieu of their proof of purchase.
For instance, free toys or cereals for every one thousand worth of purchase of a brand of
diapers. Self-liquidating premiums require consumers to pay a certain amount of the item or
the total cost of the merchandise which is normally lower than the retail price. The goal of this
technique is to offer value to consumers which will bring them delight of somehow. This
technique is also tied directly to the advertising campaign in order to establish brand's good
will and customer engagement.
d. Contest and Sweepstakes. Needless to say, most consumers are influence by the “instant –
millionaire syndrome “or the “pot-of-gold-at-the-end –of-the-rainbow- mentality. This makes
contents and sweepstakes exciting and attractive not only to many consumers but also to
markets as this technique generates attention and interest of a large number of consumers. A
contest is a form of sales promotion activity where consumers are lured to join in a
competition of skills or ability in exchange for a price or money. Some contents take in a form
of an activity instructing consumers to take appropriate action in exchange of a prize such as
completing a puzzle or buying a specific volume or quantity of a brand before getting the free
merchandised or buying it at a lower price. For instance, the promotional activities of 2018
Coca-Cola Philippines dubbed as “Coke Studios patch-on Promo”. The mechanics includes
the purchase of a 500mlcoca cola for a chance to win a limiters –Edition Coke Studio Patch
for free and raffle entry to win VIP tickets at Coca-Cola Christmas Concert.
Also, sweepstakes is a promotion where winners are determined purely by chance. Participants are
required to follow the entry mechanics and sometimes coupled with a proof of their purchase. Game is one
form of sweepstakes with a chance element or odds of winning such as scratch-off cards and the like.
e. Refunds and Rebates. Refunds, otherwise known as rebates, are incentives given to customers in a
form of a cash refund allowing shoppers to save even a portion from their shopping budget. Many
retailers have been using this technique. Some apply refunds and rebates approach through their Loyalty
program. They offer membership cards to buyers or their patrons and this allows the cardholder to earn
rebates or "shopping points" every time they will make a purchase at the branch or nearby outlets. These
points could be redeemed in any appropriate time for them to enjoy some cash incentives. Marketers
believe that refund offers enhance the likelihood of repeat purchase. Hence, more industries have been
using this to team up with their other marketing and promotion activities.
f. Bonus Packs. This technique offers consumer an extra amount of a product at a regular price, thus
allowing consumers to enjoy greater shopping experience. Say for instance, a mother who used to buy a
pack of detergent, now gets an extra sachet of it for the same retail price. Normally, bonus pack is
offered in limited period under a limited number of units only. This is an effective tactic against a
competitor’s promotion or introduction of a new brand. Moreover, this is also proven to cause a positive
impact on the purchasing behavior of the consumer right at the time he or she is about to make a
purchase.
g. Price-Off Deals. This is another sales promotion device that directly reduces the price of the brand
which normally ranges from five percent up to 75 percent or more. This practice is typically done by
retailers and sometimes goes with an important occasion, store anniversary or a holiday season. This is
also another useful device to counter-attack competitor's product promotion.
h. Event Marketing and Event Sponsorship. It is a type of consumer-oriented promotion where a

company's brand is linked to an event or where a themed activity is developed for the purpose the
consumers of creating a memorable and engaging experience for the consumers or target audience. For
instance, Eden Cheese, by Kraft Foods Philippines, held a simultaneous nationwide Cook-off challenge
which was made open to all Filipinos who love to cook. This event has turned the attention of many in the
community as a Grand Cook-Off challenge came after the local event. On the contrary, an event
sponsorship is when a company develops actual; sponsorship relations with a particular event and
provides financial support in return for the right to display a brand name, logo or play an advertising
message during the entire duration of the event this is very common in the holding of town fiestas,
beauty pageants, concepts, sports events and many more wherein the organizers gather support from
various industries in exchange of their chance to be promoted during the entire event.,
2. Trade-Oriented Sales Promotions. This is a sales promotion program that targets marketing
intermediaries such as wholesalers and retailers alongside with management support for new and
established brands. This trade-oriented sales promotion aims to accomplish different objectives, as
mentioned in the book of Belch and Belch. Such objectives include as follow:
a. Obtain distribution for new products;
b. Maintain trade support for established brands;
c. Encourage retailers to display established brands; and
d. Build retail inventories.
Marketers and manufacturers alike have to consider using varied trade promotion tools in order to
establish loyalty and support from business allies considering they have the options to give in to any
allurement that competitors had prepared for them, hence this matter should be controlled of by the
organization. Trade promotions may come in different schemes depending on the intensity of the company's
objectives:
1. Contests and Incentives. This special incentive program targets primarily the sales personnel of
the wholesalers and retailers encouraging them to double their selling effort for the brand. These
sales people are an important link in the distribution chain considering their knowledge of the market
and their technical and sales skills. This incentive program may be in the form of cash payment or a
contest tied up to product sales, new account placements or merchandising efforts.
2. Trade Allowances. This is the most common type of trade promotion as it encourages marketing
intermediaries to stock, promote and display the manufacturer's products. Belch and Belch
introduced different kinds of trade allowances such as buying allowance, promotional or display
allowances and slotting allowances. Buying allowance is a price reduction or a free good offered to
resellers one very ordered merchandise that go over the expected average quantity. For instance, a
dealer used to order eight cases of bottled juice but because of the manufacturer's offer of a free
case or a reduction of price in every container, if the dealer buys 10 cases, then resellers may find
this offer a winning proposition. Further, when resellers performed some promotional activities in
support ah of the brand such as providing special shelf display, the use of end-cap display,
gondolas, and other point of purchase activities, manufacturers usually reward the retailers with a
fixed amount referred to as promotional allowance. Typically, this incentive may no have been
stipulated in the contract agreed upon by both parties. Another stipulation in the dealer's contract
with the manufacturer may also include the provision of slotting allowances, also known as of
stocking allowances or introductory allowances. Basically, retailers demand for certain fees from
manufacturers for accommodating or providing slots for their new products that normally accumulate
costs such as costs in redesigning store shelves, addendums in their inventory records, warehouse
space and briefing employees about the new product, notwithstanding the risks that the store had
assumed for an introduction failure.
3. Sales Training Programs. Large organizations, especially those with aggressive sales quotas,
often sponsor sales training classes to retail personnel to increase their knowledge and stir up their
10]) motivation in selling the brand. Oftentimes, manufacturers also distribute selling aids to retail
employees that include sales or reference manuals, product brochures, video tapes containing
product demonstrations and practical selling tips.
Coordinating Sales Promotion with other IMC Tools
Proper coordination of IMC tools can offer synergistic effect in the brand's sales performance rather
than relying on either one promotional mix element alone. Yet the collaboration of varied promotional
elements requires careful and intellectual decisions from the managerial level of the organization. Belch and
Belch suggest the following considerations: (a) budget allocation; (b) coordination of advertising and
promotion theme; and (c)media support and timing.
Budget allocation is about balancing the number of resources that will go for advertising versus
consumer and trade-oriented sales promotions. Managers may take a look at the brand’s stage in the
product life cycle as one important factor because the brands stage will justify the extent of promotional
activities needed to push a newly introduce product or a product at its maturity stage. Such product
strategies in every life cycle stage of the product have been discussed already at the previous chapter of this
book. Now, this is already a decision between how much percentage will go for TV advertisement and how
much is for product trials ad buying allowances.
Next consideration is the theme for the planned advertising and sales promotion activity which will
point out one cohesive selling proposition for the whole duration. All promotional elements should be working
towards the achievement of the objective that is to draw attention, communicate the brand's attributes and
drive consumers to buy the product. For instance, under Coca-Cola's theme Open Happiness,
advertisements on various media about family bonding with a Coke on top of their dining table were tied up
with sales promotion activity like buying a bottle of coke with your names or the names of your loved ones
written onto it; this theme was also linked to their campaign that sponsors some Overseas Filipino Workers
(OFW) to fulfill their long-time dreams of coming back to their home towns and be reunited with their families
ever after.
Lastly, it is logical to plan the medium to be used in communicating the selling theme to target
audience, materials to be used in the conduct of sales promotion, the frequency to the delivery of
messages and the proper schedule of the campaign in consideration with the occasion or events at hand
like anniversary, holiday season or a celebration. This is to ensure that the efforts of the company will not
be ignored by the target market as it delivers timely and needed information hence will yield positive result
for the brand and the company.
Limitations of Sales Promotion
Though the popularity of sales promotion has been long-established but it is not a panacea in
marketing. Definitely, it will not fill in a void of a poorly-developed product nor a lousy advertisement and an
inefficient sales team. The lack of adequate planning and sound management of sales promotion program
may also be detrimental to the brand as well as in attaining its short-term objectives. Overuse of consumer-
oriented sales promotion is not the quick-fix solution to the brand's low performance because constantly
promoted brand may lose its perceived value and may develop unfavourable response from the consumers.
Why? Because experts also believed that sales promotion may dampen the image of the brand as price is an
important denominator for quality and value.
Another reason is the buying decisions that are only based on product incentives and not from the
real attributes that the product has, and once the sales promotion ended up, they will soon probably look for
other substitutes that are on sales. This scenario will put the organization under a sales promotion trap that
can result when several competitors use promotions extensively. Finally, when sales promotion got
unmanaged, it may overwhelm the company and the result may be reversed just like the popular incident of
Pepsi-Cola Philippines' promotional activity called the "Number Fever" in 1992. Many consumers were
hooked on the lottery-type of promo wherein the lucky winner shall win as big as one million together with
other consolation winners. Products' sales rose up to 40%. Until on May 25, 1992, a wrong number
combination was announced and everything turned out a disaster, when mistakably Pepsi had printed the
winning number-349 on 800,000 caps! The incident resulted to chaos and lawsuits from angry claimants.
On the other hand, sales promotion aimed at the resellers also has drawbacks such that it has the
probability of returned inventories at the end of the promotion period or the inefficiency of the program may
cause several inventories to stay too long on the shelves, diminish their value leading to consumer
dissatisfaction. Further, there might be an instance that the cause of the unsuccessful sales promotion
program is the inability of some wholesalers and retailers to deliver the promised incentives that are linked
to the brand.
Public Relation
Operating in a very dynamic environment opens to a numerous number of challenges in which

company should objectively handle. Amongst these challenges is in establishing sustainable positive
relationship with the organization's stakeholders. Company's customers constitute the biggest percentage of
their stakeholders. They are part of the eyeing public empowered to convey messages at any given time and
situation in a form of a feedback about the company or its products - feedbacks that may tarnish or honor the
company's image.
Public relation is a strategic communication process that allows companies to manage the
reputation they have been protecting over time. This element of promotion mix enables companies to
monitor and assess public attitudes and execute plans and programs to earn continued public
acceptance and loyalty. It is also important to decipher the individual boundaries between public relations
and publicity. While public relation is a management function that is controlled internally, publicity is
uncontrolled as it is derived from external parties.
Yet, either controlled and uncontrolled, publicity, public relations and corporate advertising are all
integral parts of the promotional efforts and are believed to be carrying great benefits in the efficient
performance of the company and its marketers. In this recent business era, marketing-oriented
companies are growing in numbers and PR takes on a much broader perspective, as it has become one
of the company's tools in the promotion of products and/or services.
Role of Public Relations in Marketing
Thomas L. Harris has offered the term Marketing Public Relations (MPR)14 that pertains to any public
relations activities that are integrated to the company's promotional efforts in response to achieving
marketing objectives. According to Harris, MPR adds value to the integrated marketing program of the
organization such as:
1. The power to stir public interests and excitement on the product even prior to media advertising
breaks. Every time Apple introduces any new product, a great deal of anticipation is created market.
Apple holds r ample press coverage making the product the” talk of the town” resulting to an
activated viral marketing strategy.
2. Potential increase in the company’s ROI. Every marketing campaign may be a knockout after public
relations initiative was strategically placed in support of product promotion.
3. When product promotion and marketing activities lie dormant, product news can be created through
public relations with little marketing costs or none at all since publicity is a non-paid advertising
medium, product news may be an attraction to bloggers, journalism and the like.
4. Improves the rate of customer service. Connection and public engagement are among PR's priority
works, companies then can take advantage of this, two-birds-in-a-shot concept, spreading
information while demonstrating quality customer services.
5. Constant engagement to customers through various communication channels and means develop
customer bonds or builds customers better fondness on the company and its products/services.
6. The buzz that PR creates in the industry could moderate opinions of key individuals or opinion
leaders hence leading to a heightened public's enthusiasm towards the product.
7. PR is a strong antidote against any black propaganda, company or product controversies prior to
injured reputation. By taking constructive actions to defend or promote a company's products, PR
can actually give consumers a reason to try the product and eventually become product patrons.
Below illustrates an example of an international brand that took profit in the use of MPR
conceptualized by Harris:
Publicity and the Organization
Publicity refers to the generation of news about a company or its product or service that appears
in broad cast or print media. To some practitioners, public relations and publicity are two synonymous
words yet analysis of their nature and the cause of their existence will make you realize that they have
certain distinction. As mentioned earlier, public relations are controlled activities and initiatives of the
management in response to their marketing objectives, while publicity, which is basically from the external
parties, is something that the company has no control about- anytime and in any competitive scenario,
news can be created. Publicity is typically a short-term strategy to respond to either positive or negative
issues concerning the company or its products/services.
Despite publicity's contrasting impacts, experts consider it more powerful than advertising or sales
promotion. Why? Because publicity is highly credible since it is not all the time sponsored by the company, a
third party or external personality may be the source of the information. Thus, consumers place more
confidence when information of the company and its product/services come from media people or other
opinion leaders because of the objectivity of the delivered messages.
Another reason for the power that publicity generates is its news value especially so when the news
is a positive note for the company; however, the impact may also become severe if it is a negative publicity.
Yet, the bottom line is that publicity is news and people like to pass on information that has news value.
Effects of positive publicity are increased simply by its nature or characteristics, being free, credible word-of-
mouth information.
Direct Marketing
This is another essential element of the Integrated Marketing Communication program which
pertains to the company's marketing initiatives of communicating directly to target customers with the
objective of obtaining response. This response may take the form of an inquiry or a purchase. What
made direct marketing distinct from other elements of promotions is its use of varied direct-response tools
including direct mail, telemarketing, interactive TV, print, internet and the like. They are important tools in
implementing the communication process intended to a specific or targeted group of recipients. Direct
marketing offers benefits to the IMC program of the company. Some of these include:
1. Reduction or even elimination of waste coverage since the promotion initiative is already directed
to a select group of people. For instance, sending direct mails to customers whose names were
taken from the company's database will cause a large savings in the company's marketing cost.
The company will send mails only to prospective clients and not spending much on sending mails
to customers who may have the least likelihood of making future transactions with the company.
2. Company could benefit much in their segmentation strategy. Their lists of recent purchasers,
buyers or card holders could be a potential basis in identifying prospects.
3. Frequency of execution may be prominent to direct marketing because of the relatively lower cost
it entails.
4. The use of direct marketing tools is a good start prior to spending much in the use of other
advertising and promotion medium. Testing the accuracy and reliability of the strategy may resort
to a minimum marketing cost only before plunging into costlier promotional efforts.
5. Timing is one very good advantage of direct marketing since any effort is controlled and
programmed based on the availability of customer database vis-a-vis marketing goals.
6. Direct marketing is personalized in nature. Messages can be crafted based on the needs and
demands of the select group.
7. Measure of effectiveness is often immediate and accurate since result can be figured out
immediately after the communication process was perfected.
EXPLAIN: Comprehension check
INSTRUCTIONS: Explain the following activities.

“Show them what You Got”
1. Using the essential elements of an Integrated Marketing Communication (IMC) program, design a
promotion mix plan for any of your selected consumer product or service-specifically, an advertising
campaign.
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2. Carefully plan out for a consumer sales promotion activity in relation to the advertising campaign you
have prepared.
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3. In your journal, prepare a reflection note. What part of the activity do you find challenging to prepare?
Which one is an exciting part?
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TOPIC SUMMARY
In this lesson you have learn that..
This chapter placed greater emphasis on the value of consumer communication in maintaining a
consistent level of competitiveness in a dynamic business environment. Marketing communication is a
business strategy that aims to create right messages for the intended and potential customers using the right
promotional medium within an ideal time frame in order to satisfy the following intentions of the organizations
such as: (a) the spread of awareness among intended buyers; (b) improvement in the rate of customer
retained and strengthened company's upselling activities; (c) building customer trust and loyalty. Creating
promotional noises is imperative should the organization aim to create retention and customer appeal.
However, experts see the limitation and higher promotion costs of the variables in the promotion mix.
Thus, promotion mix model is one practical solution to the stated concerns. The promotion mix model is a
combination of both non-personal and personal types of marketing communications. The non-personal
elements under this model include advertising, sales promotion, public relations and direct marketing while
the sole element under the personal form of communication is personal selling. As business industry evolves
dynamically, the need to create a much louder and stronger brand communication becomes even greater.
This phenomenon resulted to the rise of Integrated Marketing Communication (IMC). Experts find the
necessity of integrating and simultaneously blending the forces from the variables of marketing
communication to send the message loud and clear to the target audience. Prior to creating an effective IMC
program, essential elements must be in place such as 1) clear objectives; 2) proper alignment of
objectives to priorities of the company; and, 3) the conduct of thorough research. And to bring in
success from the company's integrated marketing communication program, important components must be
reckoned such as 1) customer focus; 2) interdepartmental cooperation; 3) database communication; 4)
leverage; and 5) return on investment.
Advertising is one of the most important elements of IMC because of its reach and wider coverage
even in a short span of time. Important decisions in advertising must be considered like mission, money,
message and media mix to ensure appealing brand message. Since advertising is quite a costly venture,
there are various approaches in which the company could base their budget appropriation like: percent of
sales, per unit expenditure, all-you-can-afford, competitive parity, the research approach and the task
approach.
Sales promotion is another essential element in the integrated marketing communications that is
when merged with other elements, advertising, public relations and personal selling activities, will make an
effective IMC program. It has different objectives such as to induce consumers towards a new product; to
encourage customers for continued patronage; reward loyal customers; influence them to buy in bulk and to
buy often. Sales promotion is also a good defense towards competition and during fluctuating sales. It can be
classified between consumer-oriented sales promotion and trade-oriented sales promotion. The former
consists of sampling, couponing, premiums, contests and sweepstakes, refunds and rebates, bonus packs,
price-off deals, and events marketing and sponsorship. While trade-oriented sales promotions include
contests and incentives, trade allowance and sales training programs.
Public relation, as another element in the IMC program, is strategic communication processes that
allow companies to manage the reputation they have been protecting over time. This element of promotion
mix enables companies to monitor and assess public attitudes and execute plans and programs to earn
continued public acceptance and loyalty. The last element in the IMC program is Direct Marketing. This
pertains to the company's marketing initiatives of communicating directly to target customers to obtain
sales. This element makes use of varied direct-response tools including direct mail, telemarketing,
interactive TV, print, internet and the like. Direct marketing offers benefits to the IMC program of the
company like: elimination of waste coverage; the use of the information taken from market segmentation;
frequency of execution may be prominent; minimum marketing costs; personalized consumer messaging;
and timing is controlled.
REFERENCES
REFERENCES
1. Banaag, Francis B. et,al.. Strategic Marketing Management, UNLIMTED BOOKS LIBRARY
SERVICES 7 PUBLISHING IMC. 2018.
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Module 3- Product and Brand Strategy With pricing Techniques and

1 Integrated Marketing Communications

This module is divided into two lessons, namely:

MODULE LEARNING OUTCOMES

In this module, you should be able to:

Lesson 1: Nature and Definition of Product

SPECIFIC LEARNING OUTCOMES

In this lesson, you should be able to:

Nature and definition of Products

managing Product Mix and Product line

The product Life Cycle and Producdt Life cyle Management

Market-driven Producdt Planning and Developmnt Process

Categoories of New Product Strategy

New Producdt Planning and Development Process

Branding and Brnd Equity

influences in Pricing Decision

Why Product Strategy is Marekt -Driven?

ENGAGE: Image Analysis

Base on the image above give your analysis in one paragraph.

EXPLORE: Reading Concepts

Figure 5.1depicts the variability of the nature of a product. PICTURE

Managing Product Mix and Product Line

The Product Life Cycle and Product Life Cycle Management

Market-driven Product Planning and Development Process

In a competitive environment, a climate of innovation and development should remain an absolute

Categories of New Product Strategy

New Product Planning and Development Process

Why new Product Fails?

Branding and Brand Equity

It is undeniable that the manufacturer's branding is a predominantly used strategy by companies in

This is another product differentiation strategy under a relatively homogenous product. It is an

4. Adaptability to be stored or kept in various places such as cabinets, shelves etc.;

Pricing and its Objectives

3. Achieve the desired market share;

4. Stabilize the growth rate of the product;

6. Induce more purchasing activities from target customers.

Pricing Strategies: How to price your product effectively?

6. Follow-the-leader Pricing Strategy. When a newly introduced product by a less competitive

Influences in Pricing Decisions

Why Product Strategy is Market-Driven?

But in a hyper-competitive environment, satisfying customer may not be enough to make

EXPLAIN: Review Questions

INSTRUCTIONS: Discuss the following activities.

In this lesson you have learn that..

SPECIFIC LEARNING OUTCOMES

In this lesson, you should be able to:

_______1.Maintaining a consistent level of competitiveness in a highly dynamic business

Integrated marketing Communications

Essentials and Types of Marketing Communications

integrated Marketing communications

Developing the Integrated Marekting /communications and its Importance

components of a Succesful Integrated Marketing /communication

Advertising:Planning and strategy

Role of Public relations in Marketing

Figure 1 describes the flow integrated marketing Communications

ENGAGE: Image Analysis

Base on the image above give your analysis in one paragraph.

EXPLORE: Reading Concepts

Essentials and Types of Marketing Communications

Maintaining a consistent level of competitiveness in a highly dynamic business environment is

Integrated Marketing Communications

Developing the Integrated Marketing Communications and Its Importance

How to create an Integrated Marketing Communication Plan