Principles of Marketing: Chapter 14,15,16 and 17

Principles of Marketing
Seventeenth Edition
Chapter 14,15,16 and 17
Engaging Consumers and

Communicating Customer Value:
Integrated Marketing Communication
Strategy
Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Learning Objectives
14-1 Define the five promotion mix tools for communicating customer value.
14-2 Discuss the changing communications landscape and the need for
integrated marketing communications.
14-3 Outline the communication process and the steps in developing effective
marketing communications.
14-4 Explain the methods for setting the promotion budget and factors that
affect the design of the promotion mix.

The 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.

The Promotional Mix
Advertising is any paid form of nonpersonal presentation and promotion
of ideas, goods, or services by an identified sponsor.
• Broadcast
• Print
• Online
• Mobile
• Outdoor

The Promotional Mix
Sales promotion is a short-term incentive to encourage the
purchase or sale of a product or service.
• Discounts
• Coupons
• Displays
• Demonstrations

The Promotional Mix
Personal selling is the personal interaction by the firm’s sales force
for the purpose of engaging customers, making sales, and building
customer relationships.

The Promotional Mix
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.

The Promotional Mix
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.

Integrated Marketing Communications
The New Marketing Communications Model
Content marketing: 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

A View of the Communication Process

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

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

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

Message Content – “What to Say”
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 to an audience’s sense of what is right and proper.

Designing a Message
Message content is “what to say.”
Message structure and format is “how to
say it.”

Choosing 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.


Nonpersonal communication channels are media that carry messages
without personal contact or feedback, including major media, atmospheres,
and events.

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

Collecting Feedback
Collecting feedback involves the communicator understanding the effect
on the target audience by measuring behavior resulting from the content.

Setting the Total Promotion Budget and Mix
Setting the Promotional Budget
• The affordable method sets the promotion budget at the level
management thinks the company can afford.
• The percentage-of-sales method sets the promotion budget at a
certain percentage of current or forecasted sales or as a percentage
of the unit sales price.

Setting the Total Promotion Budget and Mix
Setting the Promotional Budget
• The competitive-parity method sets the promotion budget to match
competitors’ outlays.
• The objective-and-task method develops the promotion budget by
specific promotion objectives and the costs of tasks needed to achieve
these objectives.

Shaping the Overall Promotional Mix

Learning Objectives
15-1 Define the role of advertising in the promotion mix.
15-2 Describe the major decisions involved in developing an advertising
program.
15-3 Define the role of public relations in the promotion mix.
15-4 Explain how companies use PR to communicate with their
publics.

Advertising
Advertising is any paid form of nonpersonal
presentation and promotion of ideas, goods,
or services by an identified sponsor.

Setting Advertising Objectives
An advertising objective is a specific
communication task to be accomplished
with a specific target audience during a
specific time.

Setting Advertising Objectives

Developing Advertising Strategy
Advertising strategy is the strategy by which the company accomplishes its

advertising objectives and consists of:
• Creating advertising messages
• Selecting advertising media

Creating the Advertising Message and Brand Content
The creative concept is the compelling “big idea” that will bring an
advertising message strategy to life in a distinctive and memorable way.
Characteristics of the appeals should be:
• Meaningful
• Believable
• Distinctive

Creating the Advertising Message and Brand Content
Message execution is when the advertiser turns the big idea into an actual
ad execution that will capture the target market’s attention and interest.
The creative team must find the best approach, style, tone, words, and format
for executing the message.

Message Execution Styles
Slice of life Lifestyle Fantasy
Mood or Musical Personality

image symbol
Testimonial
Technical Scientific
or
expertise evidence
endorsement

Creating the Advertising Message
and Brand Content
Message execution also includes:
• Tone
 Positive or negative
• Attention-getting words
• Format
 Illustration
 Headline
 Copy

Selecting Advertising Media
The major steps in advertising media selection are:
• Determining reach, frequency, impact, and engagement
• Choosing among major media types
• Selecting specific media vehicles
• Choosing media timing

Reach is a measure of the percentage of people in the target market who are
exposed to the ad campaign during a given period of time.
Frequency is a measure of how many times the average person in the target
market is exposed to the message.
Impact is the qualitative value of a message exposure through a given
medium.
Engagement is a measure of things such as ratings, readership, listenership,
and click-through rates.


Selecting specific media vehicles involves decisions presenting the message
effectively and efficiently to the target customer and must consider the
message’s:
• Impact
• Effectiveness
• Cost

Deciding on media timing:
When deciding on media timing,
the planner must consider:
• Seasonality
• Pattern of the advertising
 Continuity—scheduling
evenly within a given period
 Pulsing—scheduling unevenly
within a given period

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.

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.

Public Relations
Lobbying involves building and maintaining relations with legislators and
government officials to influence legislation and regulation.
Investor relations involves maintaining relationships with shareholders and

others in the financial community.
Development involves public relations with donors or members of nonprofit

organizations to gain financial or volunteer support.

Public Relations
The Role and Impact of PR
• Lower cost than advertising
• Stronger impact on public awareness than advertising
• Has power to engage consumers and make them part of the brand story

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

Learning Objectives
16-1 Discuss the role of a company’s salespeople in creating value for customers
and building customer relationships.
16-2 Identify and explain the six major sales force management steps.
16-3 Discuss the personal selling process, distinguishing between transaction-
oriented marketing and relationship marketing.
16-4 Explain how sales promotion campaigns are developed and implemented.

Personal Selling
Personal selling is the interpersonal part of the promotion mix and
can include:
• Face-to-face communication
• Telephone communication
• Video or Web conferencing

Personal Selling
The Nature of Personal Selling

Salespeople are an effective link between the company and its customers to
produce customer value and company profit by
• Representing the company to customers
• Representing customers to the company
• Working closely with marketing

Managing the Sales Force
Sales force management is the analysis, planning, implementation, and control
of sales force activities.

Designing Sales Force Strategy and Structure
Territorial sales force structure
Product sales force structure
Customer sales force structure

Territorial sales force structure: each salesperson is assigned an exclusive
geographic area and sells the company’s full line of products and services to
all customers in that territory.
• Defines salesperson’s job
• Fixes accountability
• Lowers sales expenses
• Improves relationship building and selling effectiveness


Product sales force structure: each salesperson sells along product lines.
• Improves product knowledge
• Can lead to territorial conflicts

Customer sales force structure: each salesperson sells along customer or

industry lines.
• Improves customer relationships


Sales Force Size
• Salespeople are one of the company’s most productive and expensive
assets.
• Workload approach to sales force size refers to grouping accounts into
different classes to determine the number of salespeople needed.

• Outside sales force (field sales force) are salespeople who travel to call
on customers in the field.
• Inside sales force are salespeople who conduct business from their offices
via telephone, online and social media interactions, or visits from
prospective buyers.
• Team selling involves Using teams of people from sales, marketing,
engineering, finance, technical support, and even upper management to
service large, complex accounts.

Recruiting and Selecting Salespeople

• Careful selection and training increases sales performance.
• Poor selection increases recruiting and training costs, leads to lost sales,
and disrupts customer relationships.

Training Salespeople
• Goals of training
• Customer knowledge
• Selling process
• Knowledge of products, company, competitors

Compensating Salespeople
Fixed Variable
amounts amounts
Fringe
Expenses
benefits

Supervising and Motivating Salespeople
• The goal of supervision is to help salespeople work smart by doing the right
things in the right ways.
• The goal of motivation is to encourage salespeople to work hard and
energetically toward sales force goals.



• Sales morale and performance can be increased through
 Organizational climate
 Sales quotas
 Positive incentives

Evaluating Salespeople and Sales Force Performance
Expense
Sales reports Call reports
reports

The Personal Selling Process

Steps in the Personal Selling Process
Prospecting identifies qualified potential customers through referrals from:
• Customers
• Suppliers
• Dealers
• Internet

Qualifying involves identifying good customers and screening out
poor ones by looking at
• Financial ability
• Volume of business
• Needs
• Location
• Growth potential

Preapproach is the process of learning as much as possible about a prospect,
including needs, who is involved in the buying, and the characteristics and styles
of the buyers.
Objectives Approaches
• Qualify the prospect • Personal visit

• Gather information • Phone call
• Make an immediate • Letter/e-mail
sale


Approach is the process where the salesperson meets and greets the
buyer and gets the relationship off to a good start and involves the
salesperson’s:
• Appearance
• Opening lines
• Follow-up remarks

Presentation is when the salesperson tells the product story to the buyer,
presenting customer benefits and showing how the product solves the
customer’s problems.


Handling objections is the process where salespeople resolve problems
that are logical, psychological, or unspoken.


Closing is the process where salespeople should recognize signals from the
buyer—including physical actions, comments, and questions—to ask for a
order and finalize the sale.

Follow-up is the last step in which the salesperson follows up after the sale
to ensure customer satisfaction and repeat business.

Personal selling is transaction-oriented to close a specific sale with a
specific customer.
The long-term goal of personal selling is to develop a mutually profitable
relationship.

Sales Promotion
Sales promotion refers to the short-term
incentives to encourage purchases or
sales of a product or service now.

Sales Promotion
Rapid Growth of Sales Promotion
• Product managers are under pressure to increase current sales.
• Companies face more competition.
• Competing brands offer less differentiation.
• Advertising efficiency has declined due to rising costs, clutter, and legal
constraints.
• Consumers have become more deal-oriented.

Sales Promotion
Sales Promotion Objectives
Setting sales promotion objectives includes using:
• Consumer promotions
• Trade promotions
• Business promotions
• Sales force promotions

Sales Promotion
Major Sales Promotion Tools

Samples offer a trial amount of a product.
Coupons are certificates that give buyers a saving when they purchase
specified products.
Rebates are similar to coupons except that the price reduction occurs after
the purchase.
Price packs offer consumers savings off the regular price of a product.

Sales Promotion

Premiums are goods offered either for free or at a low price.
Advertising specialties are useful articles imprinted with the advertiser’s name,
logo, or message that are given as gifts to consumers.
Point-of-purchase promotions include displays and demonstrations that take
place at the point of sale.

Sales Promotion

Contests, sweepstakes, and games give consumers the chance to win
something—such as cash, trips, or goods—by luck or through extra effort.
• Contests require an entry by a consumer.
• 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.
Event marketing or event sponsorship is creating a brand-marketing event
or serving as a sole or participating sponsor of events created by others.

Sales Promotion
Major Tools for Trade Promotions
Discount Allowance
Specialty
Free goods
advertising

Sales Promotion
Major Sales Promotion Tools for Business Customers

Conventions and trade shows are effective to reach many customers not
reached with the regular sales force.
Sales contests are effective in motivating salespeople or dealers to increase
performance over a given period.

Sales Promotion
Developing the Sales Promotion Program

• Size of the incentive
• Conditions for participation
• Promotion and distribution of the program
• Length of the program
• Evaluation of the program

Learning Objectives
17-1 Define direct and digital marketing and discuss their rapid growth and
benefits to customers and companies.
17-2 Identify and discuss the major forms of direct and digital marketing.
17-3 Explain how companies have responded to the internet and the digital
age with various online marketing strategies.
17-4 Discuss how companies use social media and mobile marketing to
engage consumers and create brand community.
17-5 Identify and discuss the traditional direct marketing forms and overview
public policy and ethical issues presented by direct marketing.

Direct and Digital Marketing
Direct and digital marketing involve engaging directly with carefully targeted
individual consumers and customer communities to both obtain an immediate
response and build lasting customer relationships.

Rapid Growth of Direct and Digital Marketing
Direct and digital marketing have become the fastest-growing form of
marketing.
Direct marketing continues to become more Internet-based, and digital
direct marketing is claiming a surging share of marketing spending and
sales.

Benefits of Direct and Digital Marketing—Buyers
• Convenience
• Ready access to many products
• Access to comparative information about companies, products, and
competitors
• Interactive and immediate

Benefits of Direct and Digital Marketing—Sellers
• Tool to build customer relationships
• Low-cost, efficient, fast alternative to reach markets
• Flexible
• Access to buyers not reachable through other channels

Forms of Direct and Digital Marketing

Marketing, The Internet, and the Digital Age
Digital and social media marketing—Using digital marketing tools
such as websites, social media, mobile apps and ads, online video,
email, and blogs that engage consumers anywhere, anytime via their
digital devices.

Online Marketing
Online marketing is marketing via the Internet using company Web sites,
online ads and promotions, e-mail, online video, and blogs.
Marketing Web sites engage consumers to move them closer to a direct

purchase or other marketing outcome.
Branded community Web sites present brand content that engages

consumers and creates customer community around a brand.

Online Marketing
Online advertising is advertising that appears while consumers are
browsing online and includes display ads, search-related ads, online
classifieds, and other forms.
E-mail marketing involves sending highly targeted, highly personalized,
relationship-building marketing messages via e-mail.
Spam is unsolicited, unwanted commercial e-mail messages.

Online Marketing
Online video marketing involves posting digital video content on brand Web
sites 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.

Marketing, the Internet, and the Digital Age
Online Marketing
Blogs are online journals where people and companies post their thoughts
and other content, usually related to narrowly defined topics.

Social Media and Mobile Marketing
Social Media Marketing
Advantages:
• Targeted and personal
• Interactive
• Immediate and timely
• Real-time marketing
• Cost effective
• Engagement and social sharing capabilities

Social Media and Mobile Marketing
Mobile Marketing
Mobile marketing delivers messages, promotions,
and other content to on-the-go consumers through
mobile phones, smartphones, tablets, and other
mobile devices.

Traditional Direct Marketing Forms
Direct-mail marketing involves an offer, announcement, reminder, or
other item to a person at a particular address.
• Personalized
• Easy-to-measure results
• Costs more than mass media
• Provides better results than mass media

Catalog direct marketing involves printed and
Web-based catalogs.
Benefits of Web-based Challenges of Web-

catalogs based catalogs
• Lower cost than printed • Require marketing

catalogs • Difficulties in attracting
• Unlimited amount of new customers
merchandise
• Real-time merchandising
• Interactive content
• Promotional features

Telemarketing involves using the telephone to sell directly to
consumers and business customers.
• Outbound telephone marketing sells directly to consumers and
businesses.
• Inbound telephone marketing uses toll-free numbers to receive
orders from television and print ads, direct mail, and catalogs.

Direct-response television marketing includes the following:
• 60 to 120 second advertisements that describe products or give
customers a toll-free number or website for ordering
• 30-minute infomercials such as home shopping channels

Kiosk Marketing

Principles of Marketing: Chapter 14,15,16 and 17

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Principles of Marketing

Chapter 14,15,16 and 17

Engaging Consumers and

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Direct and digital marketing involves engaging directly with carefully

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Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Copyright © 2018 Pearson Education Ltd. All Rights Reserved.

Identify the target audience

Determine the communication objectives

Design the message

Choose the media to send the message

Select message source and collect

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What will How it will

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Rational appeal relates to the audience’s self-interest.

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Personal communication involves two or more people communicating directly

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Choosing Communication Channels and Media

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Advertising strategy is the strategy by which the company accomplishes its

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Slice of life Lifestyle Fantasy

Mood or Musical Personality

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Investor relations involves maintaining relationships with shareholders and

Development involves public relations with donors or members of nonprofit

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