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Chapter 14 - slide 1Copyright © 2009 Pearson Education, Inc.
Publishing as Prentice Hall
Chapter Fourteen
Communicating Customer
Value: Integrated Marketing
Communications Strategy
Chapter 14 - slide 2Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Communicating Customer Value: Integrated
Marketing Communications Strategy
• 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
Topic Outline
Chapter 14 - slide 3Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Chapter 14 - slide 4Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Promotion Mix
Advertising is any paid form of non-personal
presentation and promotion of ideas, goods,
or services by an identified sponsor
• Broadcast
• Print
• Internet
• Outdoor
Major Promotion Tools
Chapter 14 - slide 5Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Promotion Mix
Sales promotion is the short-term incentives to
encourage the purchase or sale of a product
or service
• Discounts
• Coupons
• Displays
• Demonstrations
Major Promotion Tools
Chapter 14 - slide 6Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Promotion Mix
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
• Web pages
Major Promotion Tools
Chapter 14 - slide 7Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Promotion Mix
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
Major Promotion Tools
Chapter 14 - slide 8Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
The Promotion Mix
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
Major Promotion Tools
Chapter 14 - slide 9Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Integrated Marketing
Communications
• Consumers are better informed
• More communication
• Less mass marketing
• Changing communications technology
The New Marketing Communications
Landscape
Chapter 14 - slide 10Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
The Need for Integrated Marketing
Communications
Chapter 14 - slide 11Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
Identify the target audience
Determine the communication
objectives
Design the message
Choose the media
Select the message source
Chapter 14 - slide 12Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
Identifying the Target market
What will
be said
How it will
be said
When it
will be said
Where it
will be said
Who will
say it
Chapter 14 - slide 13Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
• Marketers seek a purchase response
that results from a consumer decision-
making process that includes the stages
of buyer readiness
Determining the Communication
Objectives
Chapter 14 - slide 14Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
AIDA Model
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action
Designing a Message
Chapter 14 - slide 15Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
Message content is an appeal or theme that
will produce the desired response
• Rational appeal
• Emotional appeal
• Moral appeal
Designing a Message
Chapter 14 - slide 16Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
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
Designing a Message
Chapter 14 - slide 17Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
Moral appeal is directed at the audience’s
sense of right and proper
Designing a Message
Chapter 14 - slide 18Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
Personal communication involves two or
more people communicating directly with
each other
• Face to face
• Phone
• Mail
• E-mail
• Internet chat
Choosing Media
Chapter 14 - slide 19Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
Personal communication is effective because
it allows personal addressing and feedback
Control of personal communication
• Company
• Independent experts
• Word-of-mouth
Choosing Media
Chapter 14 - slide 20Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing 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
Choosing Media
Personal Communication
Chapter 14 - slide 21Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
Nonpersonal communication is media that
carry messages without personal contact or
feedback, including major media,
atmospheres, and events that affect the
buyer directly
Nonpersonal Communication Channels
Chapter 14 - slide 22Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
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
Nonpersonal Communication Channels
Chapter 14 - slide 23Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
Events are staged occurrences that
communicate messages to target audiences
• Press conferences
• Grand openings
• Exhibits
• Public tours
Nonpersonal Communication Channels
Chapter 14 - slide 24Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
The message’s impact on the target audience is
affected by how the audience views the
communicator
• Celebrities
– Athletes
– Entertainers
• Professionals
– Health care providers
Selecting the Message Source
Chapter 14 - slide 25Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Steps in Developing Effective
Marketing Communication
Involves the communicator understanding the
effect on the target audience by measuring
behavior resulting from the behavior
Collecting Feedback
Chapter 14 - slide 26Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Setting the Total Promotion
Budget and Mix
Affordable budget method sets the budget at
an affordable level
• Ignores the effects of promotion on sales
Setting the Total Promotion Budget
Chapter 14 - slide 27Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Setting the Total Promotion
Budget and Mix
Chapter 14 - slide 28Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Competitive-parity method sets the budget to
match competitor outlays
• Represents industry standards
• Avoids promotion wars
Setting the Total Promotion Budget
Setting the Total Promotion
Budget and Mix
Chapter 14 - slide 29Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Setting the Total Promotion
Budget and Mix
Chapter 14 - slide 30Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Advertising reaches masses of geographically
dispersed buyers at a low cost per
exposure, and it enables the seller to repeat
a message many times
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool
Setting the Total Promotion
Budget and Mix
Chapter 14 - slide 31Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool
Setting the Total Promotion
Budget and Mix
Chapter 14 - slide 32Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool
Setting the Total Promotion
Budget and Mix
Chapter 14 - slide 33Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
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
Shaping the Overall Promotion Mix
The Nature of Each Promotion Tool
Setting the Total Promotion
Budget and Mix
Chapter 14 - slide 34Copyright © 2010 Pearson Education, Inc.
Publishing as Prentice Hall
Integrating the Promotion Mix
Checklist
Setting the Total Promotion
Budget and Mix

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Chapter #14

  • 1. Chapter 14 - slide 1Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fourteen Communicating Customer Value: Integrated Marketing Communications Strategy
  • 2. Chapter 14 - slide 2Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Communicating Customer Value: Integrated Marketing Communications Strategy • 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 Topic Outline
  • 3. Chapter 14 - slide 3Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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
  • 4. Chapter 14 - slide 4Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Promotion Mix Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor • Broadcast • Print • Internet • Outdoor Major Promotion Tools
  • 5. Chapter 14 - slide 5Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Promotion Mix Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service • Discounts • Coupons • Displays • Demonstrations Major Promotion Tools
  • 6. Chapter 14 - slide 6Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Promotion Mix 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 • Web pages Major Promotion Tools
  • 7. Chapter 14 - slide 7Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Promotion Mix 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 Major Promotion Tools
  • 8. Chapter 14 - slide 8Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Promotion Mix 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 Major Promotion Tools
  • 9. Chapter 14 - slide 9Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Integrated Marketing Communications • Consumers are better informed • More communication • Less mass marketing • Changing communications technology The New Marketing Communications Landscape
  • 10. Chapter 14 - slide 10Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 The Need for Integrated Marketing Communications
  • 11. Chapter 14 - slide 11Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Identify the target audience Determine the communication objectives Design the message Choose the media Select the message source
  • 12. Chapter 14 - slide 12Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Identifying the Target market What will be said How it will be said When it will be said Where it will be said Who will say it
  • 13. Chapter 14 - slide 13Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication • Marketers seek a purchase response that results from a consumer decision- making process that includes the stages of buyer readiness Determining the Communication Objectives
  • 14. Chapter 14 - slide 14Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication AIDA Model • Get Attention • Hold Interest • Arouse Desire • Obtain Action Designing a Message
  • 15. Chapter 14 - slide 15Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Message content is an appeal or theme that will produce the desired response • Rational appeal • Emotional appeal • Moral appeal Designing a Message
  • 16. Chapter 14 - slide 16Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication 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 Designing a Message
  • 17. Chapter 14 - slide 17Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Moral appeal is directed at the audience’s sense of right and proper Designing a Message
  • 18. Chapter 14 - slide 18Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Personal communication involves two or more people communicating directly with each other • Face to face • Phone • Mail • E-mail • Internet chat Choosing Media
  • 19. Chapter 14 - slide 19Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Personal communication is effective because it allows personal addressing and feedback Control of personal communication • Company • Independent experts • Word-of-mouth Choosing Media
  • 20. Chapter 14 - slide 20Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing 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 Choosing Media Personal Communication
  • 21. Chapter 14 - slide 21Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Nonpersonal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly Nonpersonal Communication Channels
  • 22. Chapter 14 - slide 22Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication 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 Nonpersonal Communication Channels
  • 23. Chapter 14 - slide 23Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Events are staged occurrences that communicate messages to target audiences • Press conferences • Grand openings • Exhibits • Public tours Nonpersonal Communication Channels
  • 24. Chapter 14 - slide 24Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication The message’s impact on the target audience is affected by how the audience views the communicator • Celebrities – Athletes – Entertainers • Professionals – Health care providers Selecting the Message Source
  • 25. Chapter 14 - slide 25Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior Collecting Feedback
  • 26. Chapter 14 - slide 26Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Setting the Total Promotion Budget and Mix Affordable budget method sets the budget at an affordable level • Ignores the effects of promotion on sales Setting the Total Promotion Budget
  • 27. Chapter 14 - slide 27Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Setting the Total Promotion Budget and Mix
  • 28. Chapter 14 - slide 28Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Competitive-parity method sets the budget to match competitor outlays • Represents industry standards • Avoids promotion wars Setting the Total Promotion Budget Setting the Total Promotion Budget and Mix
  • 29. Chapter 14 - slide 29Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Setting the Total Promotion Budget and Mix
  • 30. Chapter 14 - slide 30Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Setting the Total Promotion Budget and Mix
  • 31. Chapter 14 - slide 31Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Setting the Total Promotion Budget and Mix
  • 32. Chapter 14 - slide 32Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Setting the Total Promotion Budget and Mix
  • 33. Chapter 14 - slide 33Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Setting the Total Promotion Budget and Mix
  • 34. Chapter 14 - slide 34Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Integrating the Promotion Mix Checklist Setting the Total Promotion Budget and Mix