Communicating Customer Value: Integrated Marketing Communications Strategy

Chapter 14 - slide 1

The Promotion Mix
The promotion mix is the specific blend of advertising, public relations, personal selling, and direct-marketing tools that the company uses to persuasively communicate customer value and build customer relationships

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Chapter 14 - slide 2

The Promotion Mix
Major Promotion Tools

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

Chapter 14 - slide 3

The Promotion Mix
Major Promotion Tools Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor • Broadcast • Print • Internet • Outdoor

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Chapter 14 - slide 4

Inc.Copyright © 2010 Pearson Education.slide 5 . Publishing as Prentice Hall 20-5 Chapter 14 .

Inc.The Promotion Mix Major Promotion Tools Sales promotion is the short-term incentives to encourage the purchase or sale of a product or service • Discounts • Coupons • Displays • Demonstrations Copyright © 2010 Pearson Education.slide 6 . Publishing as Prentice Hall Chapter 14 .

Copyright © 2010 Pearson Education. Inc.slide 7 . Publishing as Prentice Hall 20-7 Chapter 14 .

Publishing as Prentice Hall Chapter 14 . and events • Press releases • Sponsorships • Special events • Web pages Copyright © 2010 Pearson Education. and handling or heading off unfavorable rumors. Inc.slide 8 . building up a good corporate image.The Promotion Mix Major Promotion Tools Public relations involves building good relations with the company’s various publics by obtaining favorable publicity. stories.

Sanjay Dutt to promote eggs and chicken. This campaign was used to boost the poultry business that was experiencing a low due to the bird flu scare. Publishing as Prentice Hall 20-9 Chapter 14 . Copyright © 2010 Pearson Education. during Egg and Chicken Festival on Friday.slide 9 . Inc. The ad also feature Fardeen Khan.

Publishing as Prentice Hall Chapter 14 . Inc.slide 10 .The Promotion Mix Major Promotion Tools 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 Copyright © 2010 Pearson Education.

The Promotion Mix Major Promotion Tools Direct marketing involves making direct connections with carefully targeted individual consumers to both obtain an immediate response and cultivate lasting customer relationships—through the use of direct mail. direct-response television. Inc.slide 11 . Publishing as Prentice Hall Chapter 14 . telephone. e-mail. and the Internet to communicate directly with specific consumers • Catalog • Telemarketing • Kiosks Copyright © 2010 Pearson Education.

slide 12 . Inc. Publishing as Prentice Hall Chapter 14 .Integrated Marketing Communications The New Marketing Communications Landscape • • • • Consumers are better informed More communication Less mass marketing Changing communications technology Copyright © 2010 Pearson Education.

slide 13 . and compelling message about the organization and its brands Copyright © 2010 Pearson Education. Publishing as Prentice Hall Chapter 14 . Inc.Integrated Marketing Communications The Need for Integrated Marketing Communications Integrated marketing communications is the integration by the company of its communication channels to deliver a clear. consistent.

Packaging Advertising Event Marketing Message Personal Selling Direct Marketing Public Relations Copyright © 2010 Pearson Education. Consistent. Inc. Compelling Message.Integrated Marketing Communications Company Carefully Integrates and Coordinates Its Many Communication Channels to Deliver a Clear.slide 14 . Publishing as Prentice Hall Sales Promotion Chapter 14 .

campaign won Gold award at the best Media Innovation (radio category ) . Inc.500 schools and got a pledge signed by children and verified by parents • Interactive website was launched Results 12 lakh children were signed . • A contest was held for parents to pen their own lyrics to the aarti tune and the ones with the best or most funny got the chance to sing it on air . 2006hhj Copyright © 2010 Pearson Education. children and even dabbawalas were invited to sing the jingle in a live chorus on popular radio stations in a plea to children to brush heir teeth at Night. Kids avoid • Objective : Promote the habit of brushing • Media : TV commercial introduced Bhoot Police (pepsodent) That fight (Bhoot) germs . Children were also invited • The contest was held for kids to become Bhoot Police • A school contact program reached 1. another commercial Mothers prying to god to get their children to brush teeth and Pepsodent Bhoot police answer the Mother’s prayers • Groups of parents. Publishing as Prentice Hall Chapter 14 .slide 15 .Pepsodent Bhoot Police • • Problem : Maturing sales Insight : Research Indicates while mothers want their kids to brush teeth regularly at Night .

Inc. Titan’s advertising and Music . after sales service network .16 .Titan • Titan conveys the image of a leading manufacturer of premium watches • Finely engineered and carved watches . Publishing as Prentice Hall Chapter 14 .slide 16 15 . Titan’s packaging with embossing and engraving . personalized story cards. Exclusive service . Celebrity Copyright © 2010 Pearson Education.

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Paul Smith and Kenzo (with flight coupons 10. corporate Flyers • Tie-in-promotions : Associate with like minded Leading International Brands – Perfumes and cosmetics like Pierre Cardin . Co-branded credit card ICICI . spacious legroom . Inc.000/-). in-flight service . and customer care . Publishing as Prentice Hall Chapter 14 . lavish sleeperette seats for added comfort . 2005 • The good Time product – Fulfills its promise thru excellence in comfort . well groomed airhostesses . maintains the aspirational status • Distribution : Adding new destinations . personal entertainment system • Price : Unlike the low cost carriers . food .slide 18 . Tata Tetley .Kingfisher • India’s fastest growing carrier launches in May . Frito-Lay Copyright © 2010 Pearson Education. doorstep delivery at guest’s request • Promotion : Communication projected a High-spirited and youthful image of the Kingfisher Airline Brand • Sales promotion : Regular Flyers programs . Brand new air busses . entertainment . Papist . Kingfisher offers full service at value prices . Tabasco .

Saffola Gold • Saffola Gold a premium edible oil . Inc.000 corporates thru message on T-shirts Results : • 34% brand association • 58% increase in Sales even with premium pricing • Nomination in best media Strategy Copyright © 2010 Pearson Education. priced 25% higher than the closest competitor . Publishing as Prentice Hall Chapter 14 . • Problem : Weakening of Brand equity • Objective : To strengthen the heart care image • Media: An Editorial Page 3 of Bombay Times on World Health Day where celebrities pledged they would take care of their heart • Featuring pledge after National Anthem on Theatres • Using Dabbawalas supported by Safolas to pass the message to about 2.00.slide 19 . positioned as healthy and safe for the heart .

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A View of the Communication Process The Communication Process Copyright © 2010 Pearson Education. Publishing as Prentice Hall Chapter 14 . Inc.slide 21 .

Steps in Developing Effective Marketing Communication Identify the target audience Determine the communication objectives Design the message Choose the media Select the message source Copyright © 2010 Pearson Education. Inc.slide 22 . Publishing as Prentice Hall Chapter 14 .

slide 23 . Publishing as Prentice Hall Chapter 14 .Steps in Developing Effective Communication Identifying the Target market What will be said How it will be said When it will be said Where it will be said Who will say it Copyright © 2010 Pearson Education. Inc.

Steps in Developing Effective Marketing Communication Determining the Communication Objectives • Marketers seek a purchase response that results from a consumer decision-making process that includes the stages of buyer readiness Copyright © 2010 Pearson Education. Inc.slide 24 . Publishing as Prentice Hall Chapter 14 .

Inc. Publishing as Prentice Hall Chapter 14 .Steps in Developing Effective Marketing Communication Designing a Message AIDA Model • Get Attention • Hold Interest • Arouse Desire • Obtain Action Copyright © 2010 Pearson Education.slide 25 .

Inc.Steps in Developing Effective Marketing Communication Designing a Message Message content is an appeal or theme that will produce the desired response • Rational appeal • Emotional appeal • Moral appeal Message Format Copyright © 2010 Pearson Education.slide 26 . Publishing as Prentice Hall Chapter 14 .

Steps in Developing Effective Marketing Communication Designing a Message 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 Copyright © 2010 Pearson Education. Publishing as Prentice Hall Chapter 14 . Inc.slide 27 .

slide 28 .Steps in Developing Effective Marketing Communication Designing a Message Moral appeal is directed at the audience’s sense of right and proper Copyright © 2010 Pearson Education. Publishing as Prentice Hall Chapter 14 . Inc.

slide 29 .Steps in Developing Effective Marketing Communication Choosing Media Personal communication involves two or more people communicating directly with each other • Face to face • Phone • Mail • E-mail • Internet chat Copyright © 2010 Pearson Education. Publishing as Prentice Hall Chapter 14 . Inc.

Steps in Developing Effective Marketing Communication Choosing Media Personal communication is effective because it allows personal addressing and feedback Control of personal communication • Company • Independent experts • Word of mouth Copyright © 2010 Pearson Education.slide 30 . Inc. Publishing as Prentice Hall Chapter 14 .

or other characteristics.slide 31 . knowledge. Inc. personality.Steps in Developing Effective Marketing Communication Choosing Media Personal Communication Opinion leaders are people within a reference group who. exerts social influence on others Buzz marketing involves cultivating opinion leaders and getting them to spread information about a product or service to others in their communities Copyright © 2010 Pearson Education. Publishing as Prentice Hall Chapter 14 . because of their special skills.

atmospheres. Inc. including major media. Publishing as Prentice Hall Chapter 14 .Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Non-personal communication is media that carry messages without personal contact or feedback. and events that affect the buyer directly Copyright © 2010 Pearson Education.slide 32 .

and online media Atmospheres are designed environments that create or reinforce the buyer’s leanings toward buying a product Copyright © 2010 Pearson Education. broadcast.slide 33 . Publishing as Prentice Hall Chapter 14 .Steps in Developing Effective Marketing Communication Non-Personal Communication Channels Major media include print. display. Inc.

Publishing as Prentice Hall Chapter 14 . Inc.Steps in Developing Effective Marketing Communication Nonpersonal Communication Channels Events are staged occurrences that communicate messages to target audiences • Press conferences • Grand openings • Exhibits • Public tours Copyright © 2010 Pearson Education.slide 34 .

Steps in Developing Effective Marketing Communication Selecting the Message Source The message’s impact on the target audience is affected by how the audience views the communicator • Celebrities – Athletes – Entertainers • Professionals – Health care providers Copyright © 2010 Pearson Education. Inc.slide 35 . Publishing as Prentice Hall Chapter 14 .

slide 36 . Inc. Publishing as Prentice Hall Chapter 14 .Steps in Developing Effective Marketing Communication Collecting Feedback Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior Copyright © 2010 Pearson Education.

slide 37 . Inc. Publishing as Prentice Hall Chapter 14 .Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Affordable budget method sets the budget at an affordable level •Ignores the effects of promotion on sales Copyright © 2010 Pearson Education.

selling price. and profit per unit • Wrongly views sales as the cause rather than the result of promotion Copyright © 2010 Pearson Education.slide 38 . Inc. Publishing as Prentice Hall Chapter 14 .Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Percentage-of-sales method sets the budget at a certain percentage of current or forecasted sales or unit sales price • Easy to use and helps management think about the relationship between promotion.

Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Competitive-parity method sets the budget to match competitor outlays • Represents industry standards • Avoids promotion wars Copyright © 2010 Pearson Education. Inc.slide 39 . Publishing as Prentice Hall Chapter 14 .

slide 40 . Publishing as Prentice Hall Chapter 14 .Setting the Total Promotion Budget and Mix Setting the Total Promotion Budget Objective-and-task method sets the budget based on what the firm wants to accomplish with promotion and includes: • Defining promotion objectives • Determining tasks to achieve the objectives • Estimating costs Copyright © 2010 Pearson Education. Inc.

slide 41 . Publishing as Prentice Hall Chapter 14 .Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Advertising reaches masses of geographically dispersed buyers at a low cost per exposure. Inc. and it enables the seller to repeat a message many times Copyright © 2010 Pearson Education.

actions. and developing customer relationships Copyright © 2010 Pearson Education. convictions. Inc.Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Personal selling is the most effective method at certain stages of the buying process. particularly in building buyers’ preferences. Publishing as Prentice Hall Chapter 14 .slide 42 .

and can be used to dramatize product offers and to boost sagging sales Copyright © 2010 Pearson Education. and premiums that attract consumer attention and offer strong incentives to purchase.slide 43 .Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Sales promotion includes coupons. contests. cents-off deals. Publishing as Prentice Hall Chapter 14 . Inc.

catalogs. immediate. and interactive promotional tool that includes direct mail. telemarketing. Publishing as Prentice Hall Chapter 14 . features. customized. and events Direct marketing is a non-public. Inc.Setting the Total Promotion Budget and Mix Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Public relations is a very believable form of promotion that includes news stories. and online marketing Copyright © 2010 Pearson Education.slide 44 . sponsorships.

Setting the Total Promotion Budget and Mix Promotion Mix Strategies Copyright © 2010 Pearson Education.slide 45 . Inc. Publishing as Prentice Hall Chapter 14 .

and quality across all communications media 6.slide 46 . Analyze trends—internal and external 3. Inc. Create compatible themes. Identify customer touch points 2. Create performance measures that are shared by all communications elements 7. Appoint a director responsible for the company’s persuasive communications efforts Copyright © 2010 Pearson Education. Audit the pockets of communication spending throughout the organization 4. Team up in communications planning 5. tones.Setting the Total Promotion Budget and Mix Integrating the Promotion Mix Checklist 1. Publishing as Prentice Hall Chapter 14 .

Inc. mechanical. without the prior written permission of the publisher. electronic. Copyright © 2010 Pearson Education. in any form or by any means.All rights reserved. Publishing as Prentice Hall Copyright © 2010 Pearson Education. stored in a retrieval system. or otherwise. Printed in the United States of America. or transmitted. photocopying. Publishing as Prentice Hall Chapter 14 . recording.slide 48 . No part of this publication may be reproduced. Inc.