14

Principles of Marketing

Communicating Customer Value:

Integrated Marketing
Communications Strategy

Hamidul Islam Hamid, Summer 2019-2020

The Marketing Communication

Marketing communication is the process by

which information about an organization and
its offerings is disseminated to selected
markets.

It is also called Promotional Mix that consists of

the specific blend of advertising, sales promotion,
public relations, personal selling, and direct-
marketing tools that the company uses to
communicate with their customers and build
customer relationships.
Purposes of Marketing
Communication

Marketing Communication is necessary to

inform buyers of the following:
 The availability of an offering both for the
new and existing products
 The unique features, benefits and brand
information of the offering
 The where and how of obtaining and using
the offering
 Integrated Marketing
Communications (IMC)

Integrated Marketing Communication (IMC) is the

concept under which a company carefully integrates
and coordinates its many communication channels
(more than one) to deliver a clear, consistent, and
convincing message about the organization and its
products.
Major Tools of Integrated Marketing
Communications
 Integrated Marketing
Communications

Advertisement is any paid form of non-personal

communication about an organization, goods,
services or idea by an identified sponsor.

Product Advertisement:
- Advertisement that focus on
selling a good or service.
- The forms include Informational,
Competitive, and Reminder
advertisement.
 Integrated Marketing
Communications

Institutional Advertisement:
Advertisement designed to build goodwill or an
image for an organization, rather than promoting a
specific good or service.

 Major Advertisement sources:

• Print Media
• Broadcast media
• Outdoor Media
• Internet & Websites
 Integrated Marketing
Communications

Advertisements by Companies
 Integrated Marketing
Communications

Sales promotion is the short-term incentives

to encourage the purchase or sale of a
product or service for a particular time, place
or event depending on company objective.
 Sales promotion is more influential tool comparing
to advertisement, and company offers sales
promotion to achieve a certain sales goal.
 Where Advertisement says “buy our product”,
Sales promotion says “buy it now”.
 Integrated Marketing
Communications

Sales promotions by Companies

 Integrated Marketing
Communications

Types of Sales Promotion

Consumer promotion: Trade promotion:
- Free sample/Coupons - Trade Discount
- Gift with purchase - Allowance
- POP promotion - Sales contest
- Contest & Games - Merchandising kits
- Price premium - Specialty Adds
- Fairs & Trade Shows - Training facilities
Integrated Marketing Communications
Use Patterns of Sales Promotion
 Integrated Marketing
Communications

Public relations involves building good

relationships with the company’s various
publics (stakeholders) by obtaining favorable
publicity, building up a good corporate
image, and handling or heading off
unfavorable rumors, stories, and events.

Through public relations activities, company

tries to enhance the positive aspects and
minimize negative factors related to products
and organization.
 Integrated Marketing
Communications

 Major Public Relation tools:

- Press relations (Meet the press)
- Publications and Company web pages
- Internal or employee communication
- External corporate communications (Lobbying)
- Event sponsorships
- CSR & Public Service activities
Public Relations of Companies
 Integrated Marketing
Communications

Personal selling is the two-way flow of

communication between a buyer and a seller,
designed to influence a person’s or group's
purchase decision.
Major personal selling tools are Door to door
visiting, Sales presentations, Participation in
exhibition and trade shows etc.
 With personal selling, the buyer feels a greater need
to listen and respond even if it is “No, thank You”.
 Integrated Marketing
Communications

Direct marketing involves making direct

connections with targeted individual
consumers to encourage them to place an
order, request more information, or visit a
store.
 By using direct telephone, direct-responsive
television adds, SMS, e-mail, and other
internet services to communicate directly
with specific consumers.
Developing an IMC Mix

Factors to be considered

 The information requirements of

potential buyers
 The nature of the offering
 The nature of the target market
 The capacity of the organization
 Information requirement of
potential buyers

Analyze the relative value of the communication tools

used at various stages in the purchase-decision
process.
 Advertising creates awareness for the product.
 Personal selling (Sales people) provide in-depth
information by answering frequently asking
questions of the customers.
 Sales promotion like brochures, and catalogs provide
Product descriptions and stimulate to trial.
 Nature of the Offering
 Advertising is useful when an offering is not complex,
is frequently purchased, is relatively inexpensive, or has
benefits that differentiate it from competitors.
 Personal selling is required when a product is
relatively expensive or its benefits are not readily
apparent.
 Sales promotion lends itself to nearly every offering
type because of the wide variety of forms it can assume.
 Target Market Characteristics

 Advertising is effective for communicating an

offering to a mass market that is geographically
scattered.
 Personal selling is useful when a small number
of buyers live in close proximity and purchase
large quantities of product.
 Direct marketing (e.g. Internet, Telephone) can
also be used to reach a geographically dispersed
target market.
A View of the Communications Process

Sender’s Field Receiver’s Field

of Experience of Experience
22
Elements of Communications Process
 A View of the Communications
Process
The Communications Process
Sender is the party sending the message to another
party. E.g. Marketer/seller like Grameenphone.
Encoding is the process of putting the thoughts or
information into a symbolic form. Add agency
assembles words and illustrations into an
advertisement that will convey the intended message.
E.g. GREY, Bitopi, Asiatic, are creating commercials
for their clients like, for GP (Stay close) highlighting
their Network.
Message is the set of language, information or symbols
the sender transmits. E.g. Product or promotional
messages from Grameenphone.
 A View of the Communications
Process
The Communications Process
Media is the communications channels through which the
message moves from sender to receiver. E.g.
Television channel, Radio station, Press or others.
Decoding is the process by which the receiver assigns or
converts a meaning to the symbolized message sent by
the marketers. It depends on individual customer’s
perceptions and understanding process.
Receiver is the party receiving the messages sent by
another party. E.g. Individual/business customers.
 A View of the Communications
Process
The Communications Process
Response is the reaction of the receiver after being
exposed to the message (change of attitudes of
the customers).
Feedback is the part of the receiver’s response
communicated back to the sender.
Noise is the unplanned barriers or distortion during
the communication process, which results in the
receiver’s getting a different message than the
one the sender sent.
 Setting the Total Promotion
Budget and Mix

How does a company decide on its promotion

budget?

Affordable budget method

Percentage-of-sales method
Competitive-parity method
Objective-and-task method
 Setting the Total Promotion
Budget and Mix

Affordable Budget Method

Affordable method refers to setting the
promotional budget at the level management
thinks the company can afford.
 Small business often use this method, they start
with total revenue, deduct operating expense and
capital outlays and then devote some portion of
remaining funds to advertising and promotion.
 Company allocate a certain promotional budget from
their operating profit.
 Setting the Total Promotion
Budget and Mix

Percentage-of-Sales Method

Percentage-of-sales method refers to setting the

promotional budget at a certain percentage
of previous year sales or forecasted sales or
as a percentage of the unit sales price.
 This approach is mostly used by durable-
goods manufacturers (e.g. Home appliances
and electronics marketers).
 Setting the Total Promotion
Budget and Mix

Competitive-Parity Method
Competitive-parity-approach refers to setting the
promotional budget based on competitors’
spending for communication. They collect
information about competitors’ advertising or
get industry estimate and set their budget.
 This approach is used by the companies where there
is strong competition like Fast Moving Consumer
Goods (FMCG) and Telecom industry.
 Setting the Total Promotion
Budget and Mix
Objective-and Task Method
Objective-and-task method refers to setting the
promotional budget by:
 Determining the specific promotional objectives.
 Identifying the tasks that must be performed to achieve
these objectives and
 Estimating the cost of performing these tasks.

- Creating awareness, giving reminder or increasing sales

can be the possible objectives for communication.
END of CHAPTER : 14