Chapter Nine

Communicating Customer Value: Integrated

Marketing Communications Strategy
Communicating Customer Value: Integrated
Marketing Communications Strategy
Topic Outline

The Promotion Mix

 Integrated Marketing Communications
A View of the Communications Process
Steps in Developing Effective Communication
Setting the Total Promotion Budget and Mix
Socially Responsible Marketing Communication
The Promotion Mix
The promotion mix is the specific blend of
advertising, public relations, personal selling,
and direct-marketing tools that the company
uses to persuasively communicate customer
value and build customer relationships
The Promotion Mix
Major Promotion Tools

Advertising is any paid form of non-personal

presentation and promotion of ideas, goods, or
services by an identified sponsor
 Broadcast
 Print
 Internet
 Outdoor
The Promotion Mix
Major Promotion Tools

Sales promotion is the short-term incentives to

encourage the purchase or sale of a product or
service
 Discounts
 Coupons
 Displays
 Demonstrations
The Promotion Mix
Major Promotion Tools

Public relations involves building good relations

with the company’s various publics by obtaining
favorable publicity, building up a good corporate
image, and handling or heading off unfavorable
rumors, stories, and events
 Press releases
 Sponsorships
 Special events
The Promotion Mix
Major Promotion Tools

Personal selling is the personal presentation by the

firm’s sales force for the purpose of making sales
and building customer relationships
 Sales presentations
 Trade shows
 Incentive programs
 The Promotion Mix
Major Promotion Tools

Direct marketing involves making direct connections with

carefully targeted individual consumers to both obtain an
immediate response and cultivate lasting customer
relationships—through the use of direct mail, telephone,
direct-response television, e-mail, and the Internet to
communicate directly with specific consumers
 Catalog
 Telemarketing
 Kiosks
Integrated Marketing Communications
The New Marketing Communications Landscape

Consumers are better informed

More communication
Less mass marketing
Changing communications technology
Integrated Marketing Communications
The Need for Integrated Marketing Communications

Integrated marketing communications is the

integration by the company of its
communication channels to deliver a clear,
consistent, and compelling message about the
organization and its brands
 Steps in Developing Effective Marketing
Communication
Identify the target audience

Determine the communication objectives

Design the message

Choose the media

Select the message source

Steps in Developing Effective Marketing
Communication
Identifying the Target market

What will How it will When it

be said be said will be said

Where it Who will

will be said say it
Steps in Developing Effective Marketing
Communication
Determining the Communication Objectives

Marketers seek a purchase response that results from a

consumer decision-making process that includes the
stages of buyer readiness
Steps in Developing Effective Marketing
Communication
Designing a Message

AIDA Model
Get Attention
Hold Interest
Arouse Desire
Obtain Action
Steps in Developing Effective Marketing
Communication
Designing a Message

Message content is an appeal or theme that will

produce the desired response
 Rational appeal
 Emotional appeal
 Moral appeal
Steps in Developing Effective Marketing
Communication
Designing a Message

Rational appeal relates to the audience’s self-

interest

Emotional appeal is an attempt to stir up positive

or negative emotions to motivate a purchase
Steps in Developing Effective Marketing
Communication
Designing a Message

Moral appeal is directed at the audience’s sense

of right.
Steps in Developing Effective Marketing
Communication
Choosing Media

Personal communication involves two or more

people communicating directly with each other
 Face to face
 Phone
 Mail
 E-mail
 Internet chat
Steps in Developing Effective Marketing
Communication
Choosing Media

Personal communication is effective because it

allows personal addressing and feedback

Control of personal communication

 Company
 Independent experts
 Word-of-mouth
Steps in Developing Effective Marketing
Communication
Choosing Media
Personal Communication

Opinion leaders are people within a reference

group who, because of their special skills,
knowledge, personality, or other
characteristics; exerts social influence on
others.
Buzz marketing involves cultivating opinion
leaders and getting them to spread
information about a product or service to
others in their communities.
Steps in Developing Effective Marketing
Communication
Nonpersonal Communication Channels

Nonpersonal communication is media that carry

messages without personal contact or feedback,
including major media, atmospheres, and events
that affect the buyer directly
Steps in Developing Effective Marketing
Communication
Nonpersonal Communication Channels

Major media include print, broadcast, display, and

online media

Atmospheres are designed environments that

create or reinforce the buyer’s leanings toward
buying a product
Steps in Developing Effective Marketing
Communication
Nonpersonal Communication Channels

Events are staged occurrences that communicate

messages to target audiences
 Press conferences
 Grand openings
 Exhibits
 Public tours
Steps in Developing Effective Marketing
Communication
Selecting the Message Source

The message’s impact on the target audience is

affected by how the audience views the
communicator
 Celebrities
 Athletes
 Entertainers
 Professionals
 Health care providers
Steps in Developing Effective Marketing
Communication
Collecting Feedback

Involves the communicator understanding the effect

on the target audience by measuring behavior
resulting from the behavior
Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget

Affordable budget method sets the budget at an

affordable level
 Ignores the effects of promotion on sales
Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget

Percentage-of-sales method sets the budget at a

certain percentage of current or forecasted sales
or unit sales price
 Easy to use and helps management think about
the relationship between promotion, selling
price, and profit per unit
 Wrongly views sales as the cause rather than the
result of promotion
Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget

Competitive-parity method sets the budget to

match competitor outlays
 Represents industry standards
 Avoids promotion wars
Setting the Total Promotion
Budget and Mix
Setting the Total Promotion Budget

Objective-and-task method sets the budget based

on what the firm wants to accomplish with
promotion and includes:
 Defining promotion objectives
 Determining tasks to achieve the objectives
 Estimating costs
Setting the Total Promotion
Budget and Mix
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool

Advertising reaches masses of geographically

dispersed buyers at a low cost per exposure,
and it enables the seller to repeat a message
many times
Setting the Total Promotion
Budget and Mix
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool

Personal selling is the most effective method at

certain stages of the buying process,
particularly in building buyers’ preferences,
convictions, actions, and developing customer
relationships
Setting the Total Promotion
Budget and Mix
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool

Sales promotion includes coupons, contests,

cents-off deals, and premiums that attract
consumer attention and offer strong
incentives to purchase, and can be used to
dramatize product offers and to boost sagging
sales
Setting the Total Promotion
Budget and Mix
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool

Public relations is a very believable form of

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

Direct marketing is a non-public, immediate,

customized, and interactive promotional tool
that includes direct mail, catalogs,
telemarketing, and online marketing
Creating and Capturing Customer Value
Topic Outline

Define marketing and outline the steps in the

marketing process
Understanding the Marketplace and Customer Needs
Designing a Customer-Driven Marketing Strategy
Preparing an Integrated Marketing Plan and Program
Building Customer Relationships
Capturing Value from Customers
The Changing Marketing Landscape
Any Questions..?

Thank You