Principles of Marketing
Seventeenth Edition
Chapter 9
Engaging Consumers and
Communicating Customer Value:
Integrated Marketing
Communication Strategy
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Learning Objectives
14-1 Define the five promotion mix tools for communicating customer value.
14-2 Discuss the changing communications landscape and the need for
integrated marketing communications.
14-3 Outline the communication process and the steps in developing effective
marketing communications.
14-4 Explain the methods for setting the promotion budget and factors that
affect the design of the promotion mix.
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The Promotional Mix
The promotion mix is the specific blend of promotion tools that the company
uses to persuasively communicate customer value and build customer
relationships.
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The Promotional Mix
Advertising is any paid form of nonpersonal presentation and promotion
of ideas, goods, or services by an identified sponsor.
• Broadcast
• Print
• Online
• Mobile
• Outdoor
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The Promotional Mix
Sales promotion is a short-term incentive to
encourage the purchase or sale of a product or service.
• Discounts
• Coupons
• Displays
• Demonstrations
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The Promotional Mix
Personal selling is the personal interaction by the firm’s sales force
for the purpose of engaging customers, making sales, and building
customer relationships.
• Sales presentations
• Trade shows
• Incentive programs: to motivate and reward sales
teams’ good performance
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The Promotional 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
• Events
• Web pages
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The Promotional Mix
Direct and digital marketing involves engaging directly with carefully
targeted individual consumers and customer communities to both obtain
an immediate response and build lasting customer relationships.
• Direct mail
• Catalogs
• Online and social media
• Mobile marketing
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Shaping the Overall Promotional Mix
The Nature of Each Promotional Tool
Advertising can reach masses of geographically dispersed buyers at a low
cost per exposure, and it enables the seller to repeat a message many times.
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.
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Shaping the Overall Promotional Mix
The Nature of Each Promotional Tool
Sales promotion includes coupons, contests, cents-off deals, and premiums
that attract consumer attention and offer strong incentives to purchase.
Public relations is a very believable form of promotion that includes news
stories, features, sponsorships, and events.
Direct and digital marketing is an immediate, customized, and interactive
promotional tool that includes direct mail, catalogs, telephone marketing,
online, mobile, and social media.
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IMC
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Integrated Marketing Communications
The New Marketing Communications Model
• Consumers are changing.
• Marketing strategies are changing.
• Advances in digital technology.
The new marketing
communications model:
Marketers are shifting ever-
larger portions of their
marketing budgets away from
old-media mainstays to online,
social, and mobile media.
Integrated Marketing Communications
The New Marketing Communications Model
Content marketing: creating, inspiring, and sharing brand messages and
conversations with and among consumers across a fluid mix of channels:
their own and those created by consumers and others.
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Integrated Marketing Communications
Integrated marketing communications (IMC) involves carefully integrating
and coordinating the company’s many communications channels to deliver a
clear, consistent, and compelling message about the organization and its
products.
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Integrated Marketing Communications
Integrated marketing
communications calls for
recognizing all touch points
where the customer may
encounter content about the
company and its brands. Each
contact with the brand will deliver
a message—whether good, bad,
or indifferent
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The Communication
Process
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A View of the Communication Process
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Steps in Developing Effective Marketing Communication
Identify the target audience
Determine the communication
objectives
Design the message
Choose the media to send the
message
Select message source and
collect feedback
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Steps in Developing Effective Marketing Communication
1. Identify the target audience
The target audience will heavily affect the communicator’s decisions on
the questions:
what will be said?
How it will be said?
When it will be said?
Where it will be said?
who will say it?
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Steps In Developing Effective Marketing Communication
2. Determine the communication objectives
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Steps in Developing Effective Marketing Communication
3. Design the message
AIDA Model
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action
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Steps in Developing Effective Marketing Communication
3. Design the message
Message content is “what to say.”
Message structure and format is “how to
say it.”
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Steps in Developing Effective Marketing Communication
3. Design the message
Message Content – “What to Say”
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.
Moral appeal is directed to an audience’s sense of what is right and proper.
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Steps in Developing Effective Marketing Communication
4. Choosing Communication Channels and Media
Personal communication involves two or more people communicating directly
with each other.
• Face to face
• Phone
• Mail or e-mail
• Texting or Internet chat
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Steps in Developing Effective Marketing Communication
4. Choosing Communication Channels and Media
Opinion leaders are people whose opinions are sought by others.
Buzz marketing involves cultivating opinion leaders and getting them to
spread information about a product or service to others in their communities.
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Steps in Developing Effective Marketing Communication
4. Choosing Communication Channels and Media
Nonpersonal communication channels are media that carry messages
without personal contact or feedback, including major media, atmospheres,
and events.
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Steps in Developing Effective Marketing Communication
5. Selecting the Message Source & Collecting Feedback
The message’s impact depends on how the target audience views
the communicator.
• Celebrities
Athletes
Entertainers
• Professionals
Health care providers
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Steps in Developing Effective Marketing Communication
5. Selecting the Message Source & Collecting Feedback
Collecting feedback involves the communicator understanding the effect
on the target audience by measuring behavior resulting from the content.
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Setting the Total Promotion
Budget and Mix
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Setting the Total Promotion Budget and Mix
Setting the Promotional Budget
• The affordable method sets the promotion budget at the level
management thinks the company can afford.
• The percentage-of-sales method sets the promotion budget at a
certain percentage of current or forecasted sales or as a percentage
of the unit sales price.
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Setting the Total Promotion Budget and Mix
Setting the Promotional Budget
• The competitive-parity method sets the promotion budget to match
competitors’ outlays.
• The objective-and-task method develops the promotion budget by
specific promotion objectives and the costs of tasks needed to achieve
these objectives.
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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.
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Shaping the Overall Promotional Mix
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Shaping the Overall Promotional Mix
Integrating The Promotional Mix
The company must take steps to see that each promotion mix element is
smoothly integrated.
The various promotion elements should work together to carry the firm’s
unique brand messages and selling points.
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Socially Responsible Marketing Communication
Advertising and Sales Promotion
• Communicate openly and honestly with consumers and resellers
• Avoid deceptive or false advertising
• Avoid bait-and-switch advertising
• Conform to all federal, state, and local regulations
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Socially Responsible Marketing Communication
Personal Selling
• Follow rules of “fair competition”
• Do not offer bribes
• Do not attempt to obtain competitors’ trade secrets
• Do not disparage competitors or their products
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