CHAPTER 19

ENGAGING CONSUMERS AND COMMUNICATING CUSTOMER

VALUE: INTEGRATED MARKETING COMMUNICATION STRATEGY
OBJECTIVE OUTLINE

• Define the four promotion mix tools for communicating customer value
• Discuss the changing communications landscape and the need for
integrated marketing communications
• Outline the communication process and the steps in developing
effective marketing communications
• Explain the methods for setting the promotion budget and factors that
affect the design of the promotion mix
THE PROMOTIONAL MIX

• Promotion mix (marketing communications mix) The specific blend of

promotion tools that the company uses to persuasively communicate
customer value and build customer relationships
• It consist of specific blend of:
• Advertising
• Sales promotion
• Personal selling
• Public relation
THE PROMOTIONAL MIX
• Advertising Any paid form of nonpersonal presentation and promotion
of ideas, goods, or services by an identified sponsor
• It includes: digital, broadcast, print, outdoor, and other forms
THE PROMOTIONAL MIX
• Sales promotion Short-term incentives to encourage the purchase or
sale of a product or a service
• It includes discounts, coupons, displays, demonstrations, and events
THE PROMOTIONAL MIX
• Personal selling Personal presentation by the firm's sales force for the
purpose of engaging customers, making sales, and building customer
relationships
• It includes sales presenta­tions, trade shows, and incentive programs
THE PROMOTIONAL MIX
• Public relations (PR) Activities designed to engage the company's
various publics and build good relations with them
• It includes news updates, stories, sponsorships, events, and webpages
INTEGRATED MARKETING COMMUNICATIONS

• Marketing communications environment is rapidly evolving

• The marketing strategies are shifting away from mass marketing and
toward more focused marketing
• In this digitally connected, mobile age, consumers are better informed
and more communications-empowered
• advances in digital technology have remarkably transformed the ways
how companies and customers communicate with each other
 •Content marketing:
INTEGRATED creating, inspiring, and
MARKETING sharing brand messages
COMMUNICATI and conversations with and
ONS among consumers across a
The New Marketing
fluid mix of paid, owned,
Communications Model earned, and shared
channels
INTEGRATED • Integrated marketing communications
MARKETING (IMC) Carefully integrating and coordinating
COMMUNICATIONS the company's communications channels
The Need For Integrated
to deliver a clear, consistent, and
Marketing compelling brand and company message
Communications
A VIEW OF THE
COMMUNICATION
PROCESS
Elements in The
Communication Process
STEPS IN DEVELOPING EFFECTIVE
MARKETING COMMUNICATION
• identify the target audience
• Determine the communication objec­tives
• Design a message
• Choose the media through which to send the message
• Select the message source
• Collect feedback
STEPS IN
DEVELOPING
• Target audience will affect
EFFECTIVE
MARKETING • What will be said?
COMMUNICATION • How it will be said?
Identifying the Target • When it will be said?
Audience
• Where it will be said?
• Who will say it?
STEPS IN
DEVELOPING
EFFECTIVE
MARKETING • Five As The five customer journey stages
COMMUNICATION on the path from awareness of a brand to
Determining the advocating it to others: awareness, appeal,
Communication Objectives ask, act, and advocacy
STEPS IN
DEVELOPING
EFFECTIVE • There are three types of appeals:
MARKETING
• Rational appeal
COMMUNICATION
• Emotional appeal
Designing a Message
• Moral appeal
STEPS IN
DEVELOPING
EFFECTIVE • Personal communication channels
MARKETING Channels through which two or more
COMMUNICATION people communicate directly with each
Choosing Communication other, including face-to-face, on the phone,
Channels and Media via mail or email, on social media, or even
through an internet "chat”
STEPS IN
DEVELOPING
EFFECTIVE • Opinion leaders are people whose opinion
MARKETING are sought by others
COMMUNICATION
• Buzz marketing Cultivating opinion leaders
Choosing Communication and getting them to spread information
Channels and Media about a product or a service to others in
their communities
STEPS IN
DEVELOPING
EFFECTIVE
MARKETING • Nonpersonal communication channels
COMMUNICATION Media that carry messages with minimal
Choosing Communication personal contact or feedback, including
Channels and Media major media, atmospheres, and events
STEPS IN • The message’s impact depends on
DEVELOPING how the target audience views the
EFFECTIVE communicator
MARKETING
COMMUNICATION • Celebrities
• Athletes
Selecting the Message Source
• Entertainers

• Professionals
• Health care providers
STEPS IN
DEVELOPING • Collecting feedback
EFFECTIVE involves the communicator
MARKETING
COMMUNICATION understanding the effect
Collecting Feedback
on the target audience by
measuring behavior
resulting from the content.
SETTING THE
TOTAL
PROMOTION • Four common methods used to set the
BUDGET AND total budget for promo­tion:
MIX • The affordable method

Setting the Promotional • the percentage-of-sales method

Budget
• The competitive-parity method
• The objective-and-task method
SETTING THE
TOTAL
PROMOTION • Affordable method Setting the promotion
BUDGET AND budget at the level management thinks the
MIX company can afford
Setting the Promotional • Percentage-of-sales method Setting the
Budget promotion budget at a certain percentage
of current or forecasted sales
SETTING THE
TOTAL • Competitive-parity method Setting the
promotion budget to match competitors'
PROMOTION
outlays
BUDGET AND
• Objective-and-task method Developing the
MIX promotion budget by (1) defining specific
Setting the Promotional promotion objectives, (2) determining the
Budget tasks needed to achieve these objectives,
and (3) estimating the costs of performing
these tasks. The sum of these costs is the
proposed promotion budget
SHAPING THE OVERALL PROMOTIONAL
MIX
• The concept of integrated marketing
communications suggests that the company
must blend the promotion tools carefully into a
coordinated promotion mix
 •Advertising can reach masses
SHAPING THE of geographically dispersed
OVERALL buyers at a low cost per exposure,
PROMOTIONAL and it enables the seller to repeat
MIX a message many times
•Personal selling is the most
The Nature of Each
Promotional Tool effective method at certain stages
of the buying process, particularly
in building buyers’ preferences,
convictions, actions, and
developing customer relationships
 •Sales promotion includes coupons,
SHAPING THE contests, cents-off deals, and premiums
that attract consumer attention and
OVERALL offer strong incentives to purchase
PROMOTIONAL •Public relations is a very believable
MIX form of promotion that includes news
stories, features, sponsorships, and
The Nature of Each events
Promotional Tool
•Direct and digital marketing is an
immediate, customized, and interactive
promotional tool that includes direct
mail, catalogs, telephone marketing,
online, mobile, and social media
 • Push strategy A promotion strategy that
SHAPING THE calls for using the sales force and trade
promotion to push the product through
OVERALL channels. The producer promotes the
PROMOTIONAL product to channel members who in turn
MIX promote it to final consumers

Push versus Pull Promotion

• Pull strategy A promotion strategy that calls
Strategy for targeting consumer advertising,
promotion, and other content at final
consumers to induce them to engage with
and buy the product, creating a demand
vacuum that "pulls" the product through the
channel
SHAPING THE
OVERALL
PROMOTIONAL
MIX
Push versus Pull Promotion
Strategy
SOCIALLY • Communicate openly and
RESPONSIBLE honestly with consumers and
MARKETING resellers
COMMUNICATI
ON • Avoid deceptive or false
advertising
Advertising and Sales
Promotion • Avoid bait-and-switch
advertising
• Conform to all federal, state,
and local regulations
 • Follow rules of “fair
SOCIALLY
RESPONSIBLE competition”
MARKETING • Do not offer bribes
COMMUNICATI
ON • Do not attempt to obtain
Personal Selling competitors’ trade secrets
• Do not disparage
competitors or their
products