Integrated Marketing

Communications
Strategy
 The Promotion Mix

 The promotion mix is

the specific blend of
promotion tools that
the company uses to
persuasively
communicate
customer value and
build customer
relationships
 The Promotion Mix
(Marketing Communication Mix )
Any Paid Form of Nonpersonal
Advertising Presentation by an Identified
Sponsor.

Sales Promotion Short-term Incentives to

Encourage Trial or Purchase.

Protect and/or Promote

Public Relations Company’s Image/products.

Personal Selling Personal Presentations.

Direct Communications
Direct Marketing With Individuals to Obtain
an Immediate Response.
 The Promotion Mix
(Marketing Communication Mix )
Company-sponsored activities
Events and experiences and programs designed to create
daily or special brand-related
interactions

Online and social Online activities and programs

media marketing designed to engage customers
or prospects

Special form of online marketing that

Mobile marketing places communications on consumer’s
cell phones, smart phones, or tablets.
 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
 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
 The Promotion Mix
Major Promotion Tools

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
 Press releases
 Sponsorships
 Special events
 Web pages
 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
 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,
telephone, direct-response television, e-
mail, and the Internet to communicate
directly with specific consumers
 Catalog
 Telemarketing
 Kiosks
Integrated Marketing Communications
The Changing Marketing Communications
Landscape

 Consumers are better informed

 Less mass marketing
 Mass markets have fragmented
(from mass marketing to target
marketing)
 More communication
 Media fragmentation; less
broadcasting
 Changing communications
technology
Common Communication Platforms
Integrated Marketing Communications
The Need for Integrated Marketing
Communications
 Conflicting messages  The Internet must be
from different sources or integrated into the
promotional approaches broader IMC mix
can confuse company or  to tie traditional
brand images branding efforts with
 especially important the interactivity and
when functional service capabilities
specialists handle of online
individual forms of communications
marketing
communications
independently
 Integrated Marketing Communications

Product’s
Design

Stores that Product’s

Sell the Price
Product

Product’s
Package
 Integrated Marketing
Communications

With Integrated Marketing

Communications (IMC) ;
the company carefully integrates and
coordinates its many
communications channels to deliver
a clear and consistent message
about the organization and its
product or service.
 The Communication Process

 Communications efforts should be viewed from

the perspective of managing customer
relationships over time.
 The communication process begins with an
audit of all potential contacts a customer might
have with the brand.
 Effective communication requires knowledge of
how communication works.
 The Communication Process
Marketers should view “communications” as the
Management of the Customer Relationship over
time through the following stages:

Preselling Selling

Post- Consuming
Consumption
A View of the Communication Process
The Communication Process
Key Factors in Good Communication

Sellers Need to
Know What Audiences Sellers Must Develop
They Wish to Reach Feedback Channels to
and Response Assess Audience’s
Desired. Response to
Messages.

Sellers Must be Good Sellers Must Send

at Encoding Messages Messages Through
That Target Audience Media that Reach
Can Decode. Target Audiences
 Steps in Developing Effective
Marketing Communication
Identify the target audience

Determine the communication

objectives

Design the message

Select Channels

Select the message source

 Steps in Developing Effective
Marketing Communication

Establish budget

Decide on promotion mix

Measure results

Manage marketing
communications
 Steps in Developing Effective
Marketing Communication
Identifying the Target Audience

What will How it will

be said be said

When it Where it
will be said will be said

Who will
say it
 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

Buyer Readiness Stages

 Who is the target?
 Which readiness stage?
 Awareness
 Knowledge
 Liking
 Preference
 Conviction
 Purchase
 Steps in Developing Effective
Marketing Communication
Designing a Message

AIDA framework guides message design:

 Get Attention
 Hold Interest
 Arouse Desire
 Obtain Action
 Steps in Developing Effective
Marketing Communication
Designing a Message

 Decisions to be made on:

 Message Content

 Message Structure

 Message Format
 Steps in Developing Effective
Marketing Communication
Designing a Message

 Message content is an appeal or theme that

will produce the desired response
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

Moral appeal is directed at the audience’s sense of right

and proper
What is appeal?

 Rational
appeals
 Emotional
appeals
 Love,
pride, joy,
humor,
fear,
guilt,
shame
 Moral
appeals
What is appeal?

 Rational
appeals
 Emotional
appeals
 Love,
pride, joy,
humor,
fear,
guilt,
shame
 Moral
appeals
 What is appeal?

 Rational
appeals
 Emotional
appeals
 Love,
pride, joy,
humor,
fear, guilt,
shame
 Moral
appeals
 What is appeal?

 Rational
appeals
 Emotional
appeals
 Moral
appeals
 Message Structure
Conclusion Drawing

Marketing communicators
must decide whether their
messages should
 draw a firm conclusion
or
 allow receivers to draw
their own conclusions
Message Structure
Two-sided Arguments

 Two-sided message – presenting

both good and bad points
 Buckley’s cough syrup
 terrible taste, but also taste is a
reason why it is effective.
 Humorous, two-sided ads have
helped make the the Buckley’s
one of the leading brands of
cough syrup in Canada.
 Message Source

 Messages
delivered by
attractive or
popular sources
can achieve
higher attention
and recall
 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
Celebrity
endorsement
Top Celebrity Endorsers
 Top Male Endorsers
• Tiger Woods
• Michael Jordan
• David Beckham
• Lance Armstrong

 Top Female Endorsers

• Maria Sharapova
• Jennifer Lopez
• Jessica Simpson
• Venus/Serena Williams
• Annika Sorenstram
 Message Source

 Highly credible
sources are more
persuasive
- What makes an
 A poor effective
spokesperson can spokesperson?
tarnish a brand
- When should they
not be used?
 Steps in Developing Effective
Marketing Communication
Selecting Channels

Personal communication involves two or more

people communicating directly with each other
 Face to face
 Phone
 Mail
 E-mail
 Internet chat
 Steps in Developing Effective
Marketing Communication
Selecting Channels
Personal communication is effective because it
allows personal addressing and feedback
Control of personal communication:
 Some are controlled directly by the company 
company salespeople contacting buyers in the target
market
 Other channels  independent experts making
statements to target buyers (e.g. consumer advocates)
 Social channels  neighbors, friends, family members
talking to target buyers
 Word of mouth effect
 Steps in Developing Effective
Marketing Communication
Selecting Channels
Opinion leaders are people within a reference
group who, because of their special skills,
knowledge, personality, or other
characteristics; 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
An Example of a Successful Buzz Marketing
Steps in Developing Effective
Marketing Communication
Non-Personal Communication Channels

Non-personal
communication is media
that carry messages
without personal contact or
feedback, including;
- major media,
- atmospheres, and
- events that affect the buyer
directly
 Steps in Developing Effective
Marketing Communication
Non-Personal Communication Channels
Major media include:
 Print media (newspapers, magazines, direct mail)
 Broadcast media (radio, TV)
 Display media (billboards, signs, posters)
 Online media (web sites, online services)
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)
 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
 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,
selling price, and profit per unit
 Wrongly views sales as the cause rather than
the result of 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
 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
 Setting the Total Promotion
Budget and Mix
Shaping the Overall Promotion Mix

 Thenature of each promotion tool

 The selected promotion mix strategy
 Factors in designing promotion mix strategy
Setting the Promotional Budget and Mix
Shaping the Overall Promotion Mix

Promotion Tools  Reaches large, geographically

dispersed audiences, often with
high frequency
 Advertising  Low cost per exposure, though
overall costs are high
 Personal Selling
 Consumers perceive advertised
 Sales Promotion goods as more legitimate
 Public Relations  Dramatizes company/brand
 Builds brand image; may
 Direct Marketing stimulate short-term sales
 Internet Marketing  Impersonal; one-way
communication
Setting the Promotional Budget and Mix
Shaping the Overall Promotion Mix

Promotion Tools  Most effective tool for building

buyers’ preferences,
 Advertising convictions, and actions
 Personal interaction allows for
 Personal Selling feedback and adjustments
 Sales Promotion  Relationship oriented
 Buyers are more attentive
 Public Relations
 Sales force represents a long-
 Direct Marketing term commitment
 Internet Marketing  Most expensive of the
promotional tools
Setting the Promotional Budget and Mix
Shaping the Overall Promotion Mix

Promotion Tools
 Makes use of a variety of
formats: premiums, coupons,
 Advertising contests, etc.
 Attracts attention, offers
 Personal Selling strong purchase incentives,
 Sales Promotion dramatizes offers, boosts
sagging sales
 Public Relations  Stimulates quick response
 Direct Marketing  Short lived
 Internet Marketing  Not effective at building long-
term brand preferences
Setting the Promotional Budget and Mix
Shaping the Overall Promotion Mix

Promotion Tools  Highly credible

 Many forms: news stories, news
 Advertising features, events and
sponsorships, etc.
 Personal Selling  Reaches many prospects missed
 Sales Promotion via other forms of promotion
 Public Relations  Dramatizes company or benefits
 Often the most underused
 Direct Marketing
element in the promotional mix
 Internet Marketing
Setting the Promotional Budget and Mix
Shaping the Overall Promotion Mix

Promotion Tools  Many forms: Telephone

marketing, direct mail, etc.
 Four distinctive
 Advertising characteristics:
 Personal Selling  Nonpublic

 Sales Promotion  Immediate

 Customized
 Public Relations
 Well-suited to targeted
 Direct Marketing marketing efforts
 Internet Marketing
Setting the Promotional Budget and Mix
Shaping the Overall Promotion Mix

Promotion Tools  Also called anline marketing

 Content, email, search, paid
media, etc.
 Advertising  Benefits:
 Personal Selling  Inexpensive
 Sales Promotion  Immediate

 Public Relations  Highly customized

 Interactive
 Direct Marketing
 Access to larger groups
 Internet Marketing  Use of social media
 Promotion Mix Strategies
PUSH STRATEGY trade promotions and personal selling efforts push
the product through the distribution channels.

PULL STRATEGY  producers use advertising and consumer sales

promotions to generate strong consumer demand for products
 Setting the Total Promotion
Budget and Mix
Factors Designing Promotion Mix
 Strategy Selected Depends on:
 Type of Product-Market
 Buyer Readiness Stage &
 Product Life-Cycle Stage
 Type of product market
 Consumer vs. business
marketing
 Advertising/sales
promotion vs. personal
selling
Promotional Tools at Different Buyer-Readiness Stages
 Promotional Tools at Different Stages of PLC

 Introduction stage  advertising and public

relations personal selling and sales promotion
 Growth stage  all tools are used slightly
(demand has its own momentum through word-
of-mouth)
 Maturity stage  sales promotion, advertising
and personal selling (all grow)
 Decline stage  sales promotion continues
strong, advertising and PR are reduced, and
salespeople give minimal attention
 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
 Recognition, recall, and behavioral measures are
assessed
 May suggest changes in product/promotion
Measuring Communication
Example of consumer Results
states for two brands
 Steps in Developing Effective
Marketing Communication
Managing Integrated Communications

1. Identify customer touch points

2. Analyze trends—internal and external that can affect your company’s
ability to do business
3. Audit the pockets of communication spending throughout the
organization
4. Identify all contact points for the company and its brands.

5. Team up in communications planning

6. Create compatible themes, tones, and quality across all
communications media
7. Create performance measures that are shared by all
communications elements
8. Appoint a director responsible for the company’s persuasive
communications efforts
 Socially Responsible Marketing
Communication
 Communicate openly and honestly with consumers
and resellers
 Avoid deceptive or false advertising
 Avoid bait-and-switch advertising
 Conform to all regulations
 Follow rules of “fair competition”
 Do not offer bribes
 Do not disparage competitors or their products