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Principles of Marketing

Dr. Do Khac Xuan Diem


Email: diem.dkx@ou.edu.vn

Chapter 10

Integrated marketing communication


strategy

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Learning objectives
• Objective 1: Define the five promotion mix tools for communicating
customer value.
• Objective 2: Discuss the changing communications landscape and the
need for integrated marketing communications.
• Objective 3: Outline the communication process and the steps in
developing effective marketing communications.

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Learning objective 1:

Define the five promotion mix tools for


communicating customer value.

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The promotion mix

The promotion mix (marketing communications mix)


The specific blend of advertising, public relations, personal selling,
sales promotion and direct and digital marketing tools that the
company uses to persuasively communicate customer value and
build customer relationships.

Advertising

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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Sales promotion

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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Personal selling
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

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Public relations
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 pre-empting unfavorable rumors,
stories, and events.
• Press releases
• Sponsorships
• Special events
• Web pages

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Direct and digital marketing

Direct and digital marketing involves interacting directly with carefully


targeted individual consumers and communities to both obtain an
immediate response and build lasting customer relationships.
• Direct mail, email
• Telephone marketing
• Catalogues
• Online and social media
• Mobile marketing

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Direct and digital marketing

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Learning objective 2:

Discuss the changing communications landscape and


the need for integrated marketing communications.

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The new marketing communications model

What are changes in marketing communication today?

Targeted, social
• Consumers are changing and engaging
• Marketing strategies are changing marketing
• Advances in digital technology communications

Mass media Internet and mobile media


Mass marketing Digital marketing

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The needs for


integrated marketing
communications

Integrated marketing
communications (IMC) involves
carefully integrating the company’s
many communications channels to
deliver a clear, consistent, and
compelling message about the
organization and its products.

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The nature of each promotion tool


1. Advertising
• Advantages
 Reach geographically dispersed customers
 Reach huge audiences quickly → low cost per exposure
 Message repeated many times
• Disadvantages
 Impersonal
 One-way communication
 Costly
2. Personal selling
• Advantages
 Building up customers’ preferences, convictions and actions
 Building customer relationships
 Customers’ listen and response
 Disadvantages: most expensive promotion tool, long-term commitment.
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The nature of each promotion tool


3. Sales promotion
• Advantages
 Strong incentives to encourage customer purchase
 Make product offers more exciting, boosting sagging sales
• Disadvantages
 Short-lived effects
4. Public relations
• Advantages
 More real and believable to readers than advertisings do
 Reach many prospects who avoid salespeople or advertisements
 Build brand preferences, brand image
• Disadvantages
 Message not repeated to build customer awareness
 Not stimulate a purchase in a short-term
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The nature of each promotion tool

5. Direct and digital marketing


• Advantages
 Less public
 Immediate and personalized message
 Interactive
 One-to-one customer relationship
• Disadvantages
 Costly (direct mail and catalogues, telephone marketing)

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Promotion mix strategies

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Promotion mix strategies

Push strategy
A promotional strategy using the salesforce and trade promotions to push the
product through marketing channels to final consumers. The producer
promotes the product to channel members who in turn promote it to final
consumers.
Pull strategy
The producer directs its marketing activities (primarily advertising and sales
promotion) towards final consumers to induce them to buy the product.

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Factors affecting the promotion mix


- Nature of the product
• Cost and risk
- Product life-cycle
 Introduction
 Heavy advertising and public relations to build brand awareness
 Sales promotion to induce trial
 Personal selling to obtain distribution
 Growth
 Heavy advertising and public relations to build brand loyalty
 Decreased sales promotion
 Personal selling to maintain distribution
 Maturity
 Advertising slightly decreased – more persuasive and reminder
 Sales promotion increased to build market share
 Personal selling to maintain distribution 24

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Factors affecting the promotion mix


- Product life-cycle
 Decline
 Advertising and public relations greatly reduced
 Sales promotion and personal selling maintain at low levels
- Type of market
• Consumer markets
Advertising – Sales promotion – Personal selling – Public relations
• Business markets
Personal selling – Sales promotion - Advertising – Public relations
- Target market characteristics
• Degree of knowledge about the product
• Geographic dispersion or concentration
- Type of buying decision
• Routine or complex
- Available funds for promotion 25

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Learning objective 3:

Outline the communication process and the steps in


developing effective marketing communications.

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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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Identify the target audience

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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Determine the communication objectives

Buyer - readiness stages

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Design the message

AIDA model
• Message content (What to
say?)
 Rational appeal
Obtain  Emotional appeal
Arouse Action  Moral appeal
Hold Desire • Message structure and
Interest format (How to say it)
Get
Attention

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Choose 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
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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Choose
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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Select the message source

The message’s impact depends on how the target audience views the
communicator.
• Celebrities
 Athletes
 Entertainers
• Professionals
 Health care providers

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Collect feedback

Collecting feedback involves the communicator understanding the effect on the


target audience by measuring behavior resulting from the content.
• Message recall
• Attitudes toward the product
• Emotions
• How many people bought the product, visited the stores, talked to others
about the product

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References

Kotler, P., & Amstrong, G., & Opresnik, M.O., (2017). Principles of marketing.

Global edition UK: Pearson Education limited.

Perreault William D., Cannon Joseph P., McCarthy - Essentials of Marketing -

McGraw-Hill 2012.

Amstrong et al. (2020). Principles of Marketing Ebook, Pearson Education

Australia.
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