Principles of Marketing

Seventeenth Edition

Chapter 14

Engaging Consumers and

Communicating Customer Value:
Integrated Marketing Communication
Strategy

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Learning Objective 1
Define the five promotion mix tools for communicating
customer value.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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. This includes advertising, sales promotion, personal selling,
public relation, and direct and digital marketing

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The Promotional Mix
1. Advertising is any paid form of nonpersonal presentation and
promotion of ideas, goods, or services by an identified sponsor (the
marketer). Advertising can be :
• Broadcast (use of tv and radio)
• Print (magazine, newspaper, fliers)
• Online (company website, social media)
• Mobile (utilize smartphone to advertise)
• Outdoor (billboard, skywriting, transit)

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The Promotional Mix
2. Sales promotion is a short-term incentive, non personal
presentation to encourage the purchase or sale of a product or
service. Types of sales promotion :
• Discounts
• Coupons
• Displays
• Demonstrations
• Premiums
• Contest
• Free gift

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The Promotional Mix
3. Personal selling is the personal interaction/presentation by the
firm’s sales force for the purpose of engaging customers, making
sales, and building customer relationships.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The Promotional Mix
4. 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. Public relations include press release,
sponsorship, publicity, donation, events, and webpages

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
The Promotional Mix

5. 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. This
includes doing selling or promoting via direct mail, email, catalogs,
telephone, tv, vending machine/kiosk, online and social media, mobile
marketing, etc

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Learning Objective 2
Discuss the changing communications landscape and the need for integrated
marketing communications.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Integrated Marketing Communications
The New Marketing Communications Model
• Consumers are changing (customers are
better informed. They use internet, social
media etc to find info)
• Marketing strategies are changing (marketers
are shifting away from mass marketing to
focused marketing)
• Advances in digital technology (technology
change the way company do business and
interact with customers)

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Integrated Marketing Communications
The New Marketing Communications Model
Marketers now view themselves as content marketing managers.
Through Content marketing, the marketer creating, inspiring, and sharing
brand messages and conversations with and among consumers across a
fluid mix of paid, owned, earned, and shared channels (no longer relying on
tv ads or print ads)

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Integrated Marketing Communications
The Need For Integrated Marketing Communications
Regardless of promotional tools used by the marketer, message that the
marketer intend to convey to the target audience must be consistent and
clear. Thus marketer must practice the concept of integrated marketing
communication (IMC).
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.
Marketer must carefully blend all the promotion tools to ensure clear ,
consistent, and compelling company and brand message
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Integrated Marketing Communications

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Learning Objective 3
Outline the communication process and the steps in developing effective
marketing communications.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
 COMMUNICATION PROCESS
THE 9 ELEMENTS
To communicate effectively with the customers, the marketer needs to understand how communication
works. Communications involve 9 elements (See page 431 for the details):
1. SENDER : the party (marketer) sending message to another party (target audience)
2. ENCODING : process of putting thought into symbolic form (use of the right words, sound,
illustration, etc)
3. MESSAGE : the set of symbols that the sender transmits
4. MEDIA : the communication channels through which the message moves from the sender to the
receiver e.g use TV
5. DECODING : the process by which receiver assigns meaning to the symbol encoded by the sender
6. RECEIVER : the party receiving the message sent by the sender
7. RESPONSE : the reactions of receiver after being exposed to the message e.g like, dislike, neutral
8. FEEDBACK : the part of the receiver’s response communicated back to the sender e.g try to find
product in store, find more info about product, buy product, etc
9. NOISE : the unplanned static or distortion during communication process, which result in the
receiver getting different message than the one the sender sent
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
A View of the Communication Process

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Steps in Developing Effective Marketing Communication

1. Identify the target audience

2. Determine the communication

objectives

3. Design the message

4. Choose the media to send the

message

5. Select message source and

collect feedback

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Steps in Developing Effective Marketing Communication
1. Identifying the Target Audience : the marketer must have a clear target audience
in mind. Audience maybe current user, potential user, those who make buying
decisions or those who influence buying decision, individuals or groups, special group
or general public. The target audience will affect the communicator’s decisions on :

What will How it will When it Where it

be said be said will be said will be said

Who will
say it

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
 Steps in Developing Effective Marketing Communication
2. Determining the communication objectives : there are 4
main objectives of communication
i. To inform : to create iii. To compare : to compare
customers awareness company product directly with few
about new product other products in the market
ii. To persuade : to iv. To remind : to make customers
influence customer to
buy company’s
remember the company’s product
product by and thus making them wanted to
highlighting the buy again from the company
quality, image,
performance of
product

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
 Steps in Developing Effective Marketing Communication

2. Determining the communication objectives

• The marketer must identify the
current situation of its target
audience before it can determine
the communication objective.
• Current situation about customers
can be identified by understanding
their readiness stages (the stages
consumers normally pass through
on their way to making a
purchase)
• There are 6 steps in the buyer
readiness stages
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Steps In Developing Effective Marketing Communication

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Steps in Developing Effective Marketing Communication
3. Designing a Message : In designing a good effective
message, that message must have these criteria :
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action
** this framework is known as AIDA Model

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Steps in Developing Effective Marketing Communication
3. Designing a Message

When putting the message together, the marketer must decide on the
Message Content - about “What to Say”
The marketer can use one of these appeals :
1. Rational appeal: the content of the message may relate to the audience’s
self-interest for example telling about the product benefits such as
performance or quality. E.g Volvo – safety car
2. Emotional appeal: is an attempt to stir up positive or negative emotions to
motivate a purchase. Marketer can use appelas ranging for love, joy, humor,
fear etc. E.g Lotion Baby Johnson (bonding between mother and baby)
3. Moral appeal: is directed to an audience’s sense of what is right and
proper. E.g Iklan Tak Nak Merokok – that show bad teeth condition
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Steps in Developing Effective Marketing Communication

3. Designing a Message
The marketer must also decide on how to handle the message
structure issue and format.
Message structure and format is “how to say it.”
• Message structure – is about drawing conclusion in the
message or leave it to the audience, present strongest
argument first or last, present one sided argument or two
sided argument?
• Message format – is about how to say the message
symbolically - use the right color, headline, illustration if use
printed ads. If use radio ads, the choice of words and voice
quality are important. If use tv, the body language, facial
expression, hairstyles, and dress are important

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Steps in Developing Effective Marketing Communication
4. Choosing Communication Channels and Media
• Marketer can use either personal or non personal communication channel.
• Personal communication involves two or more people communicating
directly with each other either Face to face, by Phone, through Mail or e-mail,
or Texting or Internet chat
• When using personal communication, the marketer can use Opinion
leaders (people whose opinions are sought by others) to convey the
message because they can influence others due to their expertise, skills,
experience etc
• That opinion leaders are then spread information about a product or service
to others in their communities through Buzz marketing
• Word-of-mouth influence (the impact of the personal words and
recommendations of trusted friends, family, associates, and other consumers
on buying behavior) is important too to influence others to buy product
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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 (such as print
media, broadcast media, display media, and online media), atmospheres
(such as the right scent in bakery or drugstore), and events (such as public
relation departments arrange grand openings or shows).

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Steps in Developing Effective Marketing Communication
5. Selecting the Message Source
The message’s impact depends on how the target audience views
the communicator. Message delivered by highly credible or popular
sources are more persuasive. The marketer can use spokesperson
such as:
• Celebrities
 Athletes
 Entertainers/artist (beauty product)
• Professionals
 Doctors (talk about healthy product)
 Economist (talk about current economy, share market etc)
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Steps in Developing Effective Marketing Communication
6. Collecting Feedback
Collecting feedback involves the communicator understanding the effect
on the target audience by measuring behavior resulting from the content.
In order to ensure either marketing communication program is a success or
otherwise, the marketer need to identify:
i. The percentage of audience who can remember the message content
ii. Frequency of audience that view/saw the ads program
iii. What points the target audience recall
iv. How the target audience felt about the content
v. Their past and present attitude toward the brand and company
vi. How many bought the product, talked to others about the product, or
visited the store to find the product
Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Learning Objective 4

Explain the methods for setting the promotion budget and factors
that affect the design of the promotion mix.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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. Small company will
allocate small budget for promotion, large company will allocate huge
budget
• 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. For example, if company wants to achieve
10% increase in sales, so it must be willing to spend RM1 million
budget. If it spend less than that, that 10% increase in sales is
impossible to achieve

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Setting the Total Promotion Budget and
Mix
• The competitive-parity method sets the promotion budget to match
competitors’ outlays. E.g Petronas and Shell are 2 close competitors. When
Petronas spent RM1 million for promotional program, Shell will spend the
same amount too
• The objective-and-task method develops the promotion budget by
specific promotion objectives and the costs of tasks needed to accomplish
it. This budgeting method includes 1) define specific promotion objectives,
2) determine tasks needed to achieve these objectives, 3) estimating costs
of performing these tasks. The sum of the costs of performing all the tasks
are the proposed promotion budget for the company

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Shaping the Overall Promotional Mix

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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.

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
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

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.
Copyright

Copyright © 2018, 2016, 2014 Pearson Education, Inc. All Rights Reserved.