Chapter Fourteen: Integrated Marketing Communications Strategy

Chapter Fourteen
Integrated Marketing
Communications Strategy
Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 1

Communicating Customer Value: Integrated
Marketing Communications Strategy
Objectives
• Define the five promotion mix tools for communicating
customer value.
• Discuss the changing communications landscape and the
need for integrated marketing communications.
• Outline the communication process and the steps in
developing effective marketing communications.
• Explain the methods for setting the promotion budget and
factors that affect the design of the promotion mix.

The Promotion Mix
• The promotion mix (marketing communications

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.

The Promotion Mix
Major Promotion Tools

The Promotion Mix
• Advertising is any paid form of non-personal

presentation and promotion of ideas, goods, or
services by an identified sponsor.
– Broadcast
– Print
– Internet
– Outdoor

The Promotion Mix
• Sales promotions are the short-term incentives

to encourage the purchase or sale of a product
or service.
– Discounts
– Coupons
– Displays
– Demonstrations

The Promotion Mix
• Public relations involves building good relations with the
company’s various publics by obtaining favourable
publicity, building up a good corporate image, and
handling or heading off unfavourable rumours, stories,
and events.
– Press releases
– Sponsorships
– Special events
– webpages

The Promotion Mix
• 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

The Promotion Mix
• 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, telephone,
direct-response television, email, and the Internet to
communicate directly with specific consumers.
– Catalogues
– Telemarketing
– Kiosks

Communications
The New Marketing Communications Landscape
• Better-informed
consumers
• More communication
• Less mass marketing
• Changing
communications
technology

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, and compelling message about the
organization and its products.

A View of the Communication
Process
The Communication Process

Process
Elements of The Communication Process
• Sender is the party sending the message to another
party.
• Encoding is the process of putting thought into symbolic
form.
• Message is the set of symbols the sender transmits.
• Media are 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.

Process
Elements of The Communication Process
• Receiver is the party receiving the message sent by
another party.
• 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’s
getting a different message than the one the sender
sent.

Steps in Developing Effective
Marketing Communication

Communication
Identifying the Target Audience

Determining the Communication Objectives
• Marketers seek a purchase response that results

from a consumer decision-making process that
includes the buyer-readiness stages:

Designing a Message
AIDA Model
• Get Attention
• Hold Interest
• Arouse Desire
• Obtain Action

Designing a Message
• Message content is an
appeal or theme that will
produce the desired
response.
– Rational appeal
– Emotional appeal
– Moral appeal

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.

Designing a Message
• Moral appeal is
directed at the
audience’s
sense of right
and proper.

Designing a Message
Message structure and message format both deal with

how the message is put across:
• Message Structure:
– Draw a conclusion, or leave it to the audience?
– Put forth the strongest arguments first or last?
– Present a one- or two-sided argument?
• Message Format:
– Every detail of the ad, from the colour of the print ad to the
body language of a TV commercial, requires planning to
communicate the right message.

Choosing Media
• Personal communication channels involve two or more

people communicating directly with each other.
– Face-to-face
– By phone
– By mail
– By email
– Through Internet chat

Choosing Media
• Personal communication is effective because it allows

personal addressing and feedback.
• Word-of-mouth influence is personal communication
about a product between target buyers and neighbours,
friends, family members, and associates.
• Personal communication channels are difficult for the
company to control as independent experts and word-of-
mouth influence overtake the company message.

Marketing Communication Choosing Media
Personal Communication
• Opinion leaders are people within a reference group

who, because of their special skills, knowledge,
personality, or other characteristics exert 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.

Non-Personal Communication Channels
• Non-personal communication refers to media that

carry messages without personal contact or
feedback, including major media, atmospheres, and
events that affect the buyer directly.

• Major media include print, broadcast, display,

and online media.
• Atmospheres are designed environments that
create or reinforce the buyer’s leanings toward
buying a product.

• Events are staged occurrences that

communicate messages to target audiences.
– Press conferences
– Grand openings
– Exhibits
– Public tours

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

Collecting Feedback
• Involves the communicator understanding the

effect on the target audience by measuring
behaviour resulting from the message.
– How many people bought a product?
– How many people talked about it with others?
– How many people visited the store?

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

Budget and Mix
• 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, selling price, and profit per unit.
– Wrongly views sales as the cause rather than the result of
promotion.

Budget and Mix
• Competitive-parity method sets the budget to

match competitor outlays.
– Argument: Represents collective wisdom of the
industry and prevents promotion wars.
– Except: Companies differ greatly, each has its own
special promotion needs, and there is no practical
evidence suggesting it successfully prevents promotion
wars.

Budget and Mix
• Objective-and-task method sets the budget

based on what the firm wants to accomplish
with promotion and includes:
– Defining specific objectives
– Determining tasks to achieve the objectives
– Estimating costs of performing tasks
• It forces management to spell out assumptions
about the relationship between dollars spent
and promotion results, but is difficult to use.

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, and
it enables the seller to repeat a message many
times.

Budget and Mix
• 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.
Budget and Mix
• Sales promotion includes coupons, contests,

cents-off deals, and premiums that attract
consumer attention and offer strong incentives
to purchase, and can be used to dramatize
product offers and to boost sagging sales.

Budget and Mix
• Public relations is a very believable form of

promotion that includes news stories, features,
sponsorships, and events.
• Direct marketing is a non-public, immediate,
customized, and interactive promotional tool
that includes direct mail, catalogues,
telemarketing, and online marketing.

Budget and Mix
Promotion Mix Strategies
• Push strategy is a promotion strategy that calls for

using the sales force and trade promotion to push the
product through channels. The producer promotes
the product to channel members, who in turn
promote it to final consumers.
• Pull strategy is a promotion strategy that calls for
spending a lot on advertising and consumer
promotion to induce final consumers to buy the
product, creating a demand vacuum that “pulls” the
product through the channel.

Budget and Mix
Promotion Mix Strategies

Budget and Mix
Integrating the Promotion Mix
Checklist

Socially Responsible Marketing
Communication
• Communicate openly and • Follow rules of “fair
honestly with consumers and competition.”
resellers. • Do not offer bribes.
• Avoid deceptive or false • Do not attempt to obtain
advertising. competitors’ trade secrets.
• Avoid bait-and-switch advertising. • Do not disparage competitors
• Conform to all federal, state, and or their products.
local regulations.

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Chapter Fourteen

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 1

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 2

• The promotion mix (marketing communications

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 3

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 4

• Advertising is any paid form of non-personal

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 5

• Sales promotions are the short-term incentives

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 6

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 7

• Personal selling is the personal presentation by

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 8

• Direct marketing involves making direct connections with

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 9

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 10

• Integrated marketing communications is the

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 11

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 12

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 13

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 14

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 15

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 16

• Marketers seek a purchase response that results

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 17

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 18

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 19

• Rational appeal relates to the audience’s self-

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 20

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 21

Message structure and message format both deal with

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 22

• Personal communication channels involve two or more

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 23

• Personal communication is effective because it allows

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 24

• Opinion leaders are people within a reference group

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 25

• Non-personal communication refers to media that

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 26

• Major media include print, broadcast, display,

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 27

• Events are staged occurrences that

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 28

• The message’s impact on

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 29

• Involves the communicator understanding the

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 30

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 31

• Percentage of sales method sets the budget at a certain

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 32

• Competitive-parity method sets the budget to

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 33

• Objective-and-task method sets the budget

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 34

• Advertising reaches masses of geographically

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 35

• Personal selling is the

• Sales promotion includes coupons, contests,

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 37

• Public relations is a very believable form of

Copyright © 2014 Pearson Canada Inc. Chapter 14 - slide 38

• Push strategy is a promotion strategy that calls for