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CHAPTER 9
Marketing Mix
Strategy III

Integrated Marketing
Communication Strategy

Lesson Outcomes

9.1 Introducing Major Promotion Tools (Marketing

Communication Mix) for communicating customer
value.
9.2 Steps in Developing Effective Communication
9.3 Advertising
9.4 Sales Promotion
9.5 Personal Selling
9.6 Public Relations
9.7 Direct and Digital Marketing

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Introducing Major
Promotion Tools
(Marketing
Communication
Mix) for
communicating
customer value LO1

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.
▪ also called its marketing communications mix.

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5 Major Promotion Tools

• any paid form of non-personal presentation and
promotion of ideas, goods, or services by an identified
Advertising sponsor
• E.g., broadcast, print, Internet, outdoor

Sales • short-term incentives to encourage the purchase or sale

of a product or service
promotion • E.g. discount, coupon

• building good relations with the company’s various

Public publics by obtaining favorable publicity, building up a
good corporate image, and handling or heading off
relations unfavorable rumors, stories, and events
• E.g. press release, sponsorship, special events

5 Major Promotion Tools

Personal ▪ personal presentation by the firm’s sales force for the

purpose of making sales and building customer
relationships
selling ▪ E.g., sales presentation, trade show

▪ Involves making direct connections with carefully

Direct targeted individual consumers to both obtain an

immediate response and cultivate lasting customer
relationships.

marketing ▪ E.g. catalog, telemarketing, direct mail, telephone,

direct-response television, e-mail, and the Internet to
communicate directly with specific consumers.

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Integrated Marketing Communications

Several major factors are changing the face of today’s marketing

communications.
▪ Consumers are changing.
▪ Marketing strategies are changing.
▪ Advances in digital technology

The new marketing communications model:

Method’s successful and long-running “Clean
happy” campaign began as an online-only
effort and still relies heavily on digital and social
media, supported only by carefully targeted
regional cable TV ads in selected markets.
Method Products P B C
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Integrated Marketing
Communications

▪ Integrated marketing communications (I MC) 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

▪ The New Marketing Communications Model will

consist of a shifting mix of both traditional mass media
and a wide array of exciting new, more-targeted,
more-personalized, more-engaging media. Marketers
more often now are identified as content marketing
managers.
▪ Content marketing: involves creating, inspiring, and
sharing brand messages and conversations with and
among consumers across a fluid mix of paid, owned,
earned, and shared channels

Integrated Marketing
Communications
Figure 14.1 Integrated Marketing Communications

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A View of the Communication Process

▪ In Today’s interactive communications technologies,

companies must ask, “How can we engage our
customers?” and “How can we let our customers engage
us?”
▪ The communications process should start with an audit of
all the potential touch points that target customers may
have with the company and its brands.
▪ For example, someone purchasing a new wireless phone
plan may talk to others, see television or magazine ads,
visit various online sites for prices and reviews, and check
out plans at Best Buy, Walmart, or a wireless provider’s
kiosk or store.

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A View of the Communication Process

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

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A View of the Communication Process

▪ The sender is the party sending the message to another party.

▪ Encoding is the process of putting thought into symbolic form.
▪ The message is the set of symbols the sender transmits.
▪ Media refer to the communications channels through which the message
moves from sender to receiver.
▪ Decoding is the process by which the receiver assigns meaning to the symbols.
▪ The receiver is the party receiving the message sent by another party.
▪ A response is the reaction of the receiver after being exposed to the message.
▪ Feedback is the part of the receiver’s response communicated back to the
sender.
▪ Noise is the unplanned static or distortion during the communication process
which results in the receiver getting a different message than the one the
sender sent.

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Steps in Developing
Effective
Communication

LO2

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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

Step 1: Identifying the Target Audience

❑ A marketing communicator starts with a clear target audience in mind.
❑ The audience may be current users or potential buyers, those who
make the buying decision, or those who influence it.
❑ The audience may be individuals, groups, special publics, or the
general public.
❑ Target audience will heavily affect the communicator’s decisions on
what will be said, how it will be said, when it will be said, where it will be
said, and who will say it.

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Steps in Developing Effective

Marketing Communication

Step 2: Determining the communication objectives

▪ Marketers seek a purchase response that results from a consumer decision-
making process that includes the stages of buyer readiness.
▪ The communicator must first build awareness and knowledge.
▪ Assuming target consumers know about the product, how do they feel about
it? These stages include liking (feeling favorable about the product),
preference (preferring it to other brands), and conviction (believing that the
product is best for them).
▪ Some members of the target market might be convinced about the product,
but not quite get around to making the purchase. The communicator must
lead these consumers to take the final step. Actions might include offering
special promotional prices, rebates, or premiums.

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Steps in Developing Effective

Marketing Communication

Step 3: Designing a Message

A I D A Model suggests the desirable qualities of a good

message. The marketing communicator must decide what
to say (message content) and how to say it (message
structure and format).
▪ Get Attention
▪ Hold Interest
▪ Arouse Desire
▪ Obtain Action

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The AIDA Model

A model that outlines the process for achieving promotional

goals in terms of stages of consumer involvement with the
messages; the acronym stands for attention, interest, desire,
and action.

The AIDA concept suggests that promotional effectiveness can

be measured in terms of consumers progressing from one
stage to the next. This model proposes that consumers
respond to marketing messages in a cognitive (thinking),
affective (feeling), and conative (doing) sequence.

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Steps in Developing Effective

Marketing Communication
Step 4: Choosing Communication Channels and Media
There are two broad types of communication channels: personal and
nonpersonal.
1. 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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Steps in Developing Effective

Marketing Communication

2. 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

Step 5: Selecting the Message Source

▪ The message’s impact depends on how the target audience
views the communicator.
▪ Thus, many food companies promote to doctors, dentists,
and other healthcare providers to motivate these
professionals to recommend specific food products to their
patients.
▪ Marketers hire celebrity endorsers—well-known athletes,
actors, musicians, and even cartoon characters—to deliver
their messages

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Define advertising,
advantages, and
disadvantages in
advertising.

LO3

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Advertising

▪ Advertising is any paid form of non-personal

presentation and promotion of ideas, goods, or services
by an identified sponsor.
▪ Includes broadcast, Print,
Online, Mobile, Outdoor, etc.

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Major Advertising Media

Medium Advantages Limitations

Television Good mass-marketing coverage; low cost per High absolute costs; high clutter;
exposure; combines sight, sound, and motion; fleeting exposure; less audience

Table 15.2 Profiles of Major Media Types

appealing to the senses selectivity

Digital, mobile, and High selectivity; low cost; immediacy; engagement Potentially low impact; high audience
social media capabilities control of content and exposure

Newspapers Flexibility; timeliness; good local market coverage; Short life; poor reproduction quality;
high believability small pass-along audience

Direct mail High audience selectivity; flexibility; no ad Relatively high cost per exposure;
competition within the same medium; allows “junk mail” image
personalization

Magazines High geographic and demographic selectivity; Long ad purchase lead time; high
credibility and prestige; high-quality reproduction; cost; no guarantee of position
long life and good pass-along readership

Radio Good local acceptance; high geographic and Audio only; fleeting exposure; low
demographic selectivity; low cost attention (“the halfheard”
medium); fragmented audiences

Outdoor Flexibility; high repeat exposure; low cost; good Little audience selectivity; creative
positional selectivity limitations

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Setting Advertising
Objectives

▪ Informative advertising is used when introducing a new

product category to build primary demand.
▪ Persuasive advertising is important with increased
competition to build selective demand.
▪ Comparative advertising is when a company compares
its brand with other brands.
▪ Reminder advertising is important with mature products
to help maintain customer relationships and keep
customers thinking about the product.

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Advertising
Advantages and Disadvantages

Advantages Disadvantage

reach masses of
geographically Information might
dispersed buyers at not be absolutely
a low cost per appropriate
exposure

Impersonal and
Increase awareness
cannot be as
among consumers
directly persuasive

Consumers tend to Children and

view advertised teenagers get
products as more influenced in a
legitimate wrong way

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Define sales
promotion,
advantages, and
disadvantages in
sales promotion.

LO4

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Sales Promotion

▪ Sales promotion is a short-term

incentive to encourage the purchase
or sale of a product or service.
▪ Examples of Sales Promotion tools:
Discounts, Coupons, Displays,
Demonstrations, etc.
▪ Sales promotions are found
everywhere. For example, your
Sunday newspaper or favourite
magazine is loaded with offers like
this one that promotes a strong and
immediate response.

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Sampling
Consumer
Sales Coupons and Rebates

Promotion Price packs

Tools
Premiums

Advertising Specialties

Point-of-Purchase Promotion

Contests, Sweepstakes & Games

Loyalty Marketing Programs 9 - 30

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Sampling is a way to reduce the amount of risk a

consumer perceives in trying a new product. For
sampling to be beneficial, the new product must
have benefits that are clearly superior to existing
products and must have a unique new attribute
that the consumer must experience to believe.

Distributing samples to specific location types

where consumers regularly meet for a
common objective or interest, is one of the
most cost-efficient methods of sampling.

SAMPLING

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A coupon is a certificate that entitles

consumers to an immediate price reduction
when they purchase the item. Coupons are
effective for product trial and repeat
purchase. They are also useful for increasing
the amount of product a customer will buy.

Rebates or cash refunds offer the

purchaser a price reduction, but the
reward is not as immediate as the
coupon and proof-of-purchase must be
mailed in.

COUPON AND
REBATES

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A premium is an extra item offered, usually

with proof of purchase, to the consumer.

Sometimes it may be a small item, such as a

T-shirt or coffee mug, or it may be free air
travel or hotel stays. Frequent-buyer clubs
and other loyalty programs offer premiums.

PREMIUMS
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PRICE PACKS

Price packs (also called cents-off

deals) offer consumers savings off the
regular price of
a product.

The producer marks the reduced

prices directly on the label or package.

Price packs can be single packages

sold at a reduced price (such as two
for the price of one) or two related
products banded together (such as a
toothbrush and toothpaste).

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ADVERTISING
SPECIALTIES

Advertising specialties are

useful articles imprinted with
the advertiser’s name, logo,
or message that are given as
gifts to consumers.

Typical items include T-shirts

and other apparel, pens,
coffee mugs, calendars, key
rings, tote bags, coolers, golf
balls, and caps.

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• Contests and sweepstakes are

promotions that give away prizes and
awards. A contest is based on some
skill or ability, but sweepstakes rely
on chance and luck.
• Give consumers the chance to win
something—such as cash, trips, or
goods.
• Sweepstakes require consumers to
submit their names for a drawing.
• Games present consumers with
something that may or may not help
them win a prize.

CONTEST,
SWEEPSTAKES &
GAMES
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Point-of-purchase (POP) promotions include

displays and demonstrations that take place
at the point of sale.

Point-of-purchase displays include shelf

talkers, shelf extenders, ads on grocery carts
and bags, end-aisle and floor-stand displays,
in-store audio messages, and audiovisual
displays.

POINT OF
PURCHASE
PROMOTION
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LOYALTY MARKETING PROGRAM OR

FREQUENT-BUYER PROGRAM
Loyalty marketing programs or frequent-buyer programs, reward loyal consumers for
making multiple purchases. Loyalty programs are designed to build long-term, mutually
beneficial relationships between a company and its key customers.
Frequent buyer programs reward loyal customers for making multiple purchases of a
particular good or service.
Frequent Buyer
Loyalty Marketing Program
Program

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Major Tools for Trade Promotions

▪ Trade promotions can persuade resellers to carry a brand,

give it shelf space, promote it in advertising, and push it to
consumers.
▪ Shelf space is so scarce these days that manufacturers
often have to offer price-offs, allowances, buy-back
guarantees, push money or free goods to retailers and
wholesalers to get products on the shelf and, once there,
to keep them on it.

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Sales Promotion
Advantages and Disadvantages

Advantages Disadvantage

Induce customer Work against the typical

traffic and sales by long term goals of
offering a lower companies such as
price creating customer loyalty

attract consumer
attention Limit per transaction
revenue opportunities.

offer strong
incentives to
purchase

To clear out excess

inventory at the
end of the season

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Define personal
selling,
advantages, and
disadvantages in
personal selling.

LO5

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Personal Selling

▪ Personal selling is the personal interaction by the firm’s

sales force for the purpose of engaging customers, making
sales, and building customer relationships.
▪ Personal selling can be more effective than advertising in
more complex selling situations.
▪ Salespeople can probe customers to learn more about their
problems and then adjust the marketing offer and
presentation to fit each customer’s special needs.
▪ includes sales presentations, trade shows, incentive
programs, face-to-face communication, telephone
communication, video or web conferencing

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Nature of Personal
Selling

❑ The people who do the selling go by many names:

salespeople, sales representatives, district
managers, account executives, sales consultants,
sales engineers, agents, and account development
reps.
❑ The best salespeople possess four key talents:
1. Intrinsic motivation
2. Disciplined work style
3. The ability to close a sale
4. The ability to build relationships with customers

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The Personal
Selling Process

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Personal Selling
Advantages and
Disadvantages Advantages Disadvantage

It is flexible High cost

Sales force
pinpoints the Poor reach
target market.

The salesperson Inconsistent

can effectively messages
respond to and
overcome objection
so that customer is
likely to buy
Potential ethical
problem/
Conflict

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Define public
relations,
advantages, and
disadvantages in
public relations.

LO6

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Public Relations

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 heading off unfavorable rumors,
stories, and events.

Publicity
Public information about a company, product, service, or issue
appears in the mass media as a news item.

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Functions of Public Relations

❑ Press relations or press agency involves the creation and placing of

newsworthy information to attract attention to a person, product, or
service.
❑ Product publicity involves publicizing specific products.
❑ Public affairs involves building and maintaining national or local
community relations.
❑ Lobbying involves building and maintaining relations with legislators
and government officials to influence legislation and regulation.
❑ Investor relations involve maintaining relationships with shareholders
and others in the financial community.
❑ Development involves public relations with donors or members of non-
profit organizations to gain financial or volunteer support.

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Major Public Relations Tools

▪ News
▪ Speeches
▪ Special events
▪ Written materials
▪ Corporate identity materials
▪ Public service activities
▪ Buzz marketing
▪ Social networking
▪ Internet

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Major Public Relations Tools

▪ News -PR professionals find or create favorable news about

the company and its products or people. Sometimes news
stories occur naturally; sometimes the PR person can
suggest events or activities that would create news.
▪ Speeches
▪ Special events-ranging from news conferences and
speeches, brand tours, and sponsorships to laser light
shows, multimedia presentations, or educational programs
designed to reach and interest target publics.
▪ Written materials-materials include annual reports,
brochures, articles, and company newsletters and
magazines.

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Major Public Relations Tools

▪ Corporate identity materials-create a corporate identity that
the public immediately recognizes. Logos, stationery,
brochures, signs, business forms, business cards, buildings,
uniforms, and company cars and trucks all become marketing
tools when they are attractive, distinctive, and memorable.
▪ Public service activities-improve public goodwill by
contributing money and time
▪ Buzz marketing-companies creating online videos, centered
around something humorous, controversial, unusual, or
outrageous.
▪ Social networking
▪ Internet

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Public Relations
Advantages and Disadvantages

Advantages Disadvantage

Exposure – more
space and time for Lack of content
product control
explanation

Distribution – a
story mentioning a
company may be ROI risk
picked up by large
media

Cost effective-
only hire PR officer

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Define direct and

digital marketing ,
advantages, and
disadvantages.

LO7

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Direct Marketing and digital

marketing

▪ 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.
▪ Includes direct mail, emails, catalogs, kiosk marketing,
online and social media, mobile marketing
▪ For example, Amazon.com interacts directly with customers
via its website or mobile app to help them discover and buy
almost anything and everything online.

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Direct Marketing and digital

marketing

The New Direct Marketing Model

For many companies today, direct and digital marketing
constitute a complete model for doing business.

The new direct marketing model: Online

travel agency Priceline.com sells its services
exclusively through online, mobile, and social
media channels. Along with other online
competitors, Priceline.com has pretty much
driven traditional offline travel agencies to
extinction.
priceline.com

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Direct and Digital

Marketing
Advantages and Advantages Disadvantage
Disadvantages

Environmental
Build loyalty
impact

Greater Privacy
flexibility intrusion

Real-time
marketing links Limited reach
to brands

Speedy
alternative for
reaching their
markets

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Forms of Direct and Digital

Marketing

Figure 17.1 Forms of Direct and Digital Marketing

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Digital and social

media Marketing

1) Online Marketing
▪ Online marketing is marketing via the internet using
company websites, online ads and promotions, email,
online video, and blogs.
➢ Marketing Websites engage consumers to move them closer to a
direct purchase or other marketing outcomes.
➢ Branded Community Websites present brand content that engages
consumers and creates customer community around a brand.
➢ Online advertising is advertising that appears while consumers are
browsing online and includes display ads, search-related ads, online
classifieds, and other forms.
➢ Email marketing involves sending highly targeted, highly
personalized, relationship-building marketing messages via email.
➢ Spam is unsolicited, unwanted commercial email messages.
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Digital and social

media Marketing

1) Online Marketing.
➢ Online video marketing involves posting digital video content on
brand websites or social media sites such as YouTube, Facebook,
and others.
➢ Viral marketing is the digital version of word-of-mouth marketing:
videos, ads, and other marketing content that is so infectious that
customers will seek it out or pass it along to friends.
➢ Blogs are online journals where people and companies post their
thoughts and other content, usually related to narrowly defined
topics.

Company blogs: The Oh My Disney blog gives

Disney buffs an “official destination for Disney
quizzes, nostalgia, news, and other Disney
magic.”
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Social Media and

Mobile Marketing

Mobile marketing delivers messages, promotions, and

other content to on-the-go consumers through mobile
phones, smartphones, tablets, and other mobile devices.

For consumers, a smartphone or

tablet can be a handy shopping
companion. As a result, mobile
advertising spending is surging.

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Social Media and

Mobile Marketing

Mobile marketing: TripAdvisor’s

mobile app –“your ultimate
travel companion”–gives users
as-they-travel access to crowd-
sourced information about
hotels, restaurants, places to go,
and things to see worldwide.
And booking options are always
just a tap away.

Taco Bell Corp.

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Traditional Direct
Marketing Forms

• Direct-mail marketing involves sending an offer,

announcement, reminder, or other item to a person at a
particular address.
• Using highly selective mailing lists, direct marketers
send out millions of mail pieces each year—letters,
catalogs, ads, brochures, samples, videos.
• Direct mail is well suited to direct, one-to-one
communication. It permits high target market
selectivity, can be personalized, is flexible, and allows
the easy measurement of results.

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Traditional Direct
Marketing Forms

• Catalog marketing
• Telemarketing involves using the telephone to sell directly to
consumers and business customers.
• Direct-response television (DRTV) marketing takes one of two
major forms: direct response television advertising and interactive
TV (iTV) advertising. Using direct-response television advertising,
direct marketers air television spots, often 60 or 120 seconds in
length, which persuasively describe a product and give customers a
toll-free number or an online site for ordering.
• Digital and touchscreen technologies, many companies are placing
information and ordering machines—called kiosks (good old-
fashioned vending machines but so much more)—in stores, airports,
hotels, college campuses, and other locations.
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Thanks
Any questions?
You can find me at @whatsapp or
nani.7shafie@gmail.com

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