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Chapter Fourteen
Communica)ng Customer Value: Integrated Marke)ng
Communica)ons Strategy
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Communicating Customer Value: Integrated Marketing Communications Strategy
• The Promo*on Mix • Integrated Marke*ng Communica*ons • A View of the Communica*ons Process • Steps in Developing Effec*ve Marke*ng Communica*on
• SeDng the Total Promo*on Budget and Mix • Socially Responsible Marke*ng Communica*on
Topic Outline
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• The promo*on mix is the specific blend of adver*sing, public rela*ons, personal selling, and direct-‐marke*ng tools that the company uses to persuasively communicate customer value and build customer rela*onships
The Promotion Mix
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The Promotion Mix
Adver)sing is any paid form of non-‐personal presenta*on and promo*on of ideas, goods, or services by an iden*fied sponsor
• Broadcast • Print • Internet • Outdoor
The Promo)on Mix
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The Promotion Mix
Sales promo)on is the short-‐term incen*ve to encourage the purchase or sale of a product or service
• Discounts • Coupons • Displays • Demonstra*ons
The Promo)on Mix
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The Promotion Mix
Personal selling is the personal presenta*on by the firm’s sales force for the purpose of making sales and building customer rela*onships
• Sales presenta*ons • Trade shows • Incen*ve programs
The Promo)on Mix
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The Promotion Mix
Public rela)ons involves building good rela*ons
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 Promo)on Mix
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The Promotion Mix
Direct marke)ng involves making direct connec*ons with carefully targeted individual consumers to both obtain an immediate response and cul*vate las*ng customer rela*onships—through the use of direct mail, telephone, direct-‐response television, e-‐mail, and the Internet to communicate directly with specific consumers
• Catalog • Telemarke*ng • Kiosks
The Promo)on Mix
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Integrated Marketing Communications
• Consumers are beQer informed
• More communica*on • Less mass marke*ng • Changing communica*ons technology
The New Marke)ng Communica)ons Model
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Integrated Marketing Communications
Integrated marke)ng communica)ons is the integra*on by the company of its communica*on channels to deliver a clear, consistent, and compelling message about the organiza*on and its brands
The Need for Integrated Marke)ng Communica)ons
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Integrated Marketing Communications Strategy
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A View of the Communication Process
The Communica)on Process
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Steps in Developing Effective Marketing Communication
Identify the target audience
Determine the communication objectives
Design the message
Choose the media
Select the message source
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Steps in Developing Effective Communication
Iden)fying the Target Audience
What will be said
How it will be said
When it will be said
Where it will be said
Who will say it
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Steps in Developing Effective Marketing Communication
• Marketers seek a purchase response that results from a consumer decision-‐making process that includes the stages of buyer readiness
Determining the Communica)on Objec)ves
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Steps in Developing Effective Marketing Communication
AIDA Model • Get AQen*on • Hold Interest • Arouse Desire • Obtain Ac*on
Designing a Message
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Steps in Developing Effective Marketing Communication
Message content is “what to say”
Message format is “how to say it”
Designing a Message
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Steps in Developing Effective Marketing Communication
Ra)onal appeal relates to the audience’s self-‐interest
Emo)onal appeal is an aQempt to s*r up posi*ve or nega*ve emo*ons to mo*vate a purchase
Moral appeal is directed at the audience’s sense of right and proper
Message Content
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Steps in Developing Effective
Marketing Communication
Personal communica)on involves two or more people communica*ng directly with each other
• Face to face • Phone • Mail • E-‐mail • Internet chat
Choosing Media
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Steps in Developing Effective
Marketing Communication
Personal communica)on is effec*ve because it allows personal addressing and feedback
Control of personal communica*on • Company • Independent experts • Word of mouth
Choosing Media
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Steps in Developing Effective
Marketing Communication
Opinion leaders are people within a reference group who, because of their special skills, knowledge, personality, or other characteris*cs, exerts social influence on others
Buzz marke)ng involves cul*va*ng opinion leaders and geDng them to spread informa*on about a product or service to others in their communi*es
Choosing Media Personal Communica)on
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Steps in Developing Effective Marketing Communication
Non-‐personal communica)on is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly
Non-‐Personal Communica)on Channels
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Steps in Developing Effective Marketing Communication
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
Non-‐Personal Communica)on Channels
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Steps in Developing Effective Marketing Communication
Events are staged occurrences that communicate messages to target audiences
• Press conferences • Grand openings • Exhibits • Public tours
Nonpersonal Communica)on Channels
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Steps in Developing Effective Marketing Communication
The message’s impact on the target audience is affected by how the audience views the communicator
• Celebri*es – Athletes – Entertainers
• Professionals – Health care providers
Selec)ng the Message Source
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Steps in Developing Effective Marketing Communication
Involves the communicator understanding
the effect on the target audience by measuring behavior resul*ng from the behavior
Collec)ng Feedback
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Setting the Total Promotion Budget and Mix
Affordable budget method sets the budget at an affordable level
• Ignores the effects of promo*on on sales
SeNng the Total Promo)on Budget
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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 rela*onship between promo*on, selling price, and profit per unit
• Wrongly views sales as the cause rather than the result of promo*on
SeNng the Total Promo)on Budget
Setting the Total Promotion Budget and Mix
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Compe))ve-‐parity method sets the budget to match compe*tor outlays
• Represents industry standards • Avoids promo*on wars
SeNng the Total Promo)on Budget
Setting the Total Promotion Budget and Mix
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Objec)ve-‐and-‐task method sets the budget based on what the firm wants to accomplish with promo*on and includes:
• Defining promo*on objec*ves • Determining tasks to achieve the
objec*ves • Es*ma*ng costs
SeNng the Total Promo)on Budget
Setting the Total Promotion Budget and Mix
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Setting the Total Promotion Budget and Mix
Adver*sing reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many *mes • Is impersonal and one-‐way communica*on
Shaping the Overall Promo)on Mix The Nature of Each Promo)on Tool
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Personal selling is the most
effec*ve method at certain stages of the buying process, par*cularly in building buyers’ preferences, convic*ons, ac*ons, and developing customer rela*onships
• However, it is most costly tool
Shaping the Overall Promo)on Mix The Nature of Each Promo)on Tool
Setting the Total Promotion Budget and Mix
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Sales promo)on includes coupons, contests, cents-‐off deals, and premiums that aQract consumer aQen*on and offer strong incen*ves to purchase, and can be used to drama*ze product offers and to boost sagging sales
• Not as effec*ve at building rela*onships and brand preference
Shaping the Overall Promo)on Mix The Nature of Each Promo)on Tool
Setting the Total Promotion Budget and Mix
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Public rela)ons is a very believable form of
promo*on that includes news stories, features, sponsorships, and events
Direct marke)ng is a non-‐public, immediate, customized, and interac*ve promo*onal tool that includes direct mail, catalogs, telemarke*ng, and online marke*ng
Shaping the Overall Promo)on Mix The Nature of Each Promo)on Tool
Setting the Total Promotion Budget and Mix
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Promo)on Mix Strategies
Shaping the Overall Promotion Mix
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• Communicate openly and honestly with consumers and resellers
• Avoid decep*ve or false adver*sing • Avoid bait-‐and-‐switch adver*sing • Conform to all federal, state, and local regula*ons
Socially Responsible Marketing Communication
• Follow rules of “fair compe**on” • Do not offer bribes • Do not aQempt to obtain compe*tors’
trade secrets • Do not disparage compe*tors or their
products Copyright ©2014 by Pearson Education, Inc. All rights reserved