1. Chapter 14 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Chapter Fourteen Communicating Customer Value: Integrated Marketing Communications Strategy

2. Chapter 14 - slide 2 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Communicating Customer Value: Integrated Marketing Communications Strategy The Promotion Mix Integrated Marketing Communications A View of the Communications Process Steps in Developing Effective Marketing Communication Setting the Total Promotion Budget and Mix Socially Responsible Marketing Communication Topic Outline

3. Chapter 14 - slide 3 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 The Promotion Mix

4. Chapter 14 - slide 4 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Promotion Mix Major Promotion Tools

5. Chapter 14 - slide 5 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Major Promotion Tools

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

7. Chapter 14 - slide 7 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The Promotion 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 Press releases Sponsorships Special events Web pages Major Promotion Tools

8. Chapter 14 - slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Major Promotion Tools

9. Chapter 14 - slide 9 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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, e-mail, and the Internet to communicate directly with specific consumers Catalog Telemarketing Kiosks Major Promotion Tools

10. Chapter 14 - slide 10 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. 1.advertising 2.public relations 3.sales promotion 4.direct marketing

11. Chapter 14 - slide 11 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor is called ________. 1.advertising 2.public relations 3.sales promotion 4.direct marketing

12. Chapter 14 - slide 12 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following includes point-of-purchase displays, premiums, discounts, and demonstrations? 1.Advertising 2.Public relations 3.Sales promotion 4.Direct marketing

13. Chapter 14 - slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following includes point-of-purchase displays, premiums, discounts, and demonstrations? 1.advertising 2.Public relations 3.Sales promotion 4.Direct marketing

14. Chapter 14 - slide 14 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The strategic blending of such things as advertising, personal selling, and direct marketing is referred to as ________. 1.marketing mix 2.promotion mix 3.distribution mix 4.wholesaling

15. Chapter 14 - slide 15 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The strategic blending of such things as advertising, personal selling, and direct marketing is referred to as ____________. 1.marketing mix 2.promotion mix 3.distribution mix 4.wholesaling

16. Chapter 14 - slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Integrated Marketing Communications Consumers are better informed More communication Less mass marketing Changing communications technology The New Marketing Communications Landscape

17. Chapter 14 - slide 17 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 brands The Need for Integrated Marketing Communications

18. Chapter 14 - slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A View of the Communication Process The Communication Process

19. Chapter 14 - slide 19 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following are the two major communication tools of the communications process? 1.The senders and the receivers 2.The message and the media 3.Encoding and noise 4.The media and encoding

20. Chapter 14 - slide 20 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following are the two major communication tools of the communications process? 1.The senders and the receivers 2.The message and the media 3.Encoding and noise 4.The media and encoding

21. Chapter 14 - slide 21 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Identify the target audience Determine the communication objectives Design the messageChoose the mediaSelect the message source

22. Chapter 14 - slide 22 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ________ involves identifying the target audience and shaping a well-coordinated promotional program to obtain the desired audience response. 1.Advertising 2.Promotion 3.Integrated marketing communication (IMC) 4.Direct marketing

23. Chapter 14 - slide 23 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ________ involves identifying the target audience and shaping a well-coordinated promotional program to obtain the desired audience response. 1.Advertising 2.Promotion 3.Integrated marketing communication (IMC) 4.Direct marketing

24. Chapter 14 - slide 24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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

25. Chapter 14 - slide 25 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Communication Objectives

26. Chapter 14 - slide 26 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Awareness, knowledge, and liking are three of the six stages of ________. 1.seller-readiness 2.buyer-readiness 3.direct marketing 4.promotion

27. Chapter 14 - slide 27 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Awareness, knowledge, and liking are three of the six stages of ________. 1.seller-readiness 2.buyer-readiness 3.direct marketing 4.promotion

28. Chapter 14 - slide 28 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication AIDA Model Get Attention Hold Interest Arouse Desire Obtain Action Designing a Message

29. Chapter 14 - slide 29 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Message content is an appeal or theme that will produce the desired response Rational appeal Emotional appeal Moral appeal Message Format Designing a Message

30. Chapter 14 - slide 30 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall All of the following are message structure issues handled by marketers except ________. 1.draw a conclusion 2.present a one-sided argument 3.present the strongest argument last 4.present an affordable method

31. Chapter 14 - slide 31 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall All of the following are message structure issues handled by marketers except ________. 1.draw a conclusion 2.present a one-sided argument 3.present the strongest argument last 4.present an affordable method

32. Chapter 14 - slide 32 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication 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

33. Chapter 14 - slide 33 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Moral appeal is directed at the audience’s sense of right and proper Designing a Message

34. Chapter 14 - slide 34 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not a type of message appeal frequently used by marketers? 1.Moral appeals 2.Emotional appeals 3.Rational appeals 4.All of the above

35. Chapter 14 - slide 35 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Which of the following is not a type of message appeal frequently used by marketers? 1.Moral appeals 2.Emotional appeals 3.Rational appeals 4.All of the above

36. Chapter 14 - slide 36 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The AIDA model includes which four steps? 1.Action, interest, do, advertise 2.Advertise, interest, desire, addition 3.Action, interest, demand, allocate 4.Attention, interest, desire, action

37. Chapter 14 - slide 37 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall The AIDA model includes which four steps? 1.Action, interest, do, advertise 2.Advertise, interest, desire, addition 3.Action, interest, demand, allocate 4.Attention, interest, desire, action

38. Chapter 14 - slide 38 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Personal communication involves two or more people communicating directly with each other Face to face Phone Mail E-mail Internet chat Choosing Media

39. Chapter 14 - slide 39 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Personal communication is effective because it allows personal addressing and feedback Control of personal communication Company Independent experts Word of mouth Choosing Media

40. Chapter 14 - slide 40 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication 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 Choosing Media Personal Communication

41. Chapter 14 - slide 41 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Personal communication about a product between target buyers and family members, neighbors, friends, and associates is called ________. 1.buzz marketing 2.public relations 3.word of mouth 4.all of the above

42. Chapter 14 - slide 42 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Personal communication about a product between target buyers and family members, neighbors, friends, and associates is called ________. 1.buzz marketing 2.public relations 3.word of mouth 4.all of the above

43. Chapter 14 - slide 43 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Cultivating opinion leaders and getting them to spread information about your product is referred to as _________ marketing. 1.buzz 2.chat 3.e-talk 4.i-mail

44. Chapter 14 - slide 44 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Cultivating opinion leaders and getting them to spread information about your product is referred to as _________ marketing. 1.buzz 2.chat 3.e-talk 4.i-mail

45. Chapter 14 - slide 45 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Non-personal communication is media that carry messages without personal contact or feedback, including major media, atmospheres, and events that affect the buyer directly Non-Personal Communication Channels

46. Chapter 14 - slide 46 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Communication Channels

47. Chapter 14 - slide 47 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Events are staged occurrences that communicate messages to target audiences Press conferences Grand openings Exhibits Public tours Non-Personal Communication Channels

48. Chapter 14 - slide 48 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What are the two broad communication channels marketers must choose between? 1.Print and broadcast 2.Personal and non-personal 3.Advertising and public relations 4.Direct mail and the Internet

49. Chapter 14 - slide 49 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall What are the two broad communication channels marketers must choose between? 1.Print and broadcast 2.Personal and non-personal 3.Advertising and public relations 4.Direct mail and the Internet

50. Chapter 14 - slide 50 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication The message’s impact on the target audience is affected by how the audience views the communicator Celebrities –Athletes –Entertainers Professionals –Health care providers Selecting the Message Source

51. Chapter 14 - slide 51 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Involves the communicator understanding the effect on the target audience by measuring behavior resulting from the behavior Collecting Feedback

52. Chapter 14 - slide 52 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Setting the Total Promotion Budget and Mix Affordable budget method sets the budget at an affordable level Ignores the effects of promotion on sales Setting the Total Promotion Budget

53. Chapter 14 - slide 53 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Setting the Total Promotion Budget and Mix

54. Chapter 14 - slide 54 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Competitive-parity method sets the budget to match competitor outlays Represents industry standards Avoids promotion wars Setting the Total Promotion Budget Setting the Total Promotion Budget and Mix

55. Chapter 14 - slide 55 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Setting the Total Promotion Budget and Mix

56. Chapter 14 - slide 56 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Affordable, percentage-of-sales, competitive- parity, and objective-and-task are the four methods of setting the ___________. 1.total budget for advertising 2.product mix 3.marketing mix 4.public relations budget

57. Chapter 14 - slide 57 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Affordable, percentage-of-sales, competitive- parity, and objective-and-task are the four methods of setting the ___________. 1.total budget for advertising 2.product mix 3.marketing mix 4.public relations budget

58. Chapter 14 - slide 58 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Setting the Total Promotion Budget and Mix Advertising reaches masses of geographically dispersed buyers at a low cost per exposure, and it enables the seller to repeat a message many times Shaping the Overall Promotion Mix The Nature of Each Promotion Tool

59. Chapter 14 - slide 59 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Setting the Total Promotion Budget and Mix

60. Chapter 14 - slide 60 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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 Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Setting the Total Promotion Budget and Mix

61. Chapter 14 - slide 61 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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, catalogs, telemarketing, and online marketing Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Setting the Total Promotion Budget and Mix

62. Chapter 14 - slide 62 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s most expensive promotional tool is ________. 1.advertising 2.personal selling 3.sales promotion 4.direct mail

63. Chapter 14 - slide 63 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A company’s most expensive promotional tool is ________. 1.advertising 2.personal selling 3.sales promotion 4.direct mail

64. Chapter 14 - slide 64 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall If a company wanted to reach a geographically dispersed population frequently and at a low cost per exposure, then the company should use ________. 1.advertising 2.personal selling 3.sales promotion 4.public relations

65. Chapter 14 - slide 65 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall If a company wanted to reach a geographically dispersed population frequently and at a low cost per exposure, then the company should use ________. 1.advertising 2.personal selling 3.sales promotion 4.public relations

66. Chapter 14 - slide 66 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Premiums (McDonald’s toys, dollar-off deals, and contests) are part of a marketer’s _________ attempt. 1.public relations 2.direct marketing 3.sales promotion 4.advertising

67. Chapter 14 - slide 67 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Premiums (McDonald’s toys, dollar-off deals, and contests) are part of a marketer’s _________ attempt. 1.public relations 2.direct marketing 3.sales promotion 4.advertising

68. Chapter 14 - slide 68 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Promotion Mix Strategies Setting the Total Promotion Budget and Mix

69. Chapter 14 - slide 69 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall If the _________ strategy is effective, consumers will demand the product from channel members. 1.push 2.slide 3.pull 4.grab

70. Chapter 14 - slide 70 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall If the _________ strategy is effective, consumers will demand the product from channel members. 1.push 2.slide 3.pull 4.grab

71. Chapter 14 - slide 71 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 1. Identify customer touch points2. Analyze trends—internal and external 3. Audit the pockets of communication spending throughout the organization 4. Team up in communications planning 5. Create compatible themes, tones, and quality across all communications media 6. Create performance measures that are shared by all communications elements 7. Appoint a director responsible for the company’s persuasive communications efforts Integrating the Promotion Mix Checklist Setting the Total Promotion Budget and Mix

72. Chapter 14 - slide 72 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Communicate openly and honestly with consumers and resellers Avoid deceptive or false advertising Avoid bait-and-switch advertising Conform to all federal, state, and local regulations Socially Responsible Marketing Communication Follow rules of “fair competition” Do not offer bribes Do not attempt to obtain competitors’ trade secrets Do not disparage competitors or their products

73. Chapter 14 - slide 73 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A product in the introductory stage of the PLC should be promoted using ________ to help build awareness among the target audience. 1.advertising and public relations 2.personal selling and direct marketing 3.sales promotion and advertising 4.public relations and direct marketing

74. Chapter 14 - slide 74 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A product in the introductory stage of the PLC should be promoted using ________ to help build awareness among the target audience. 1.advertising and public relations 2.personal selling and direct marketing 3.sales promotion and advertising 4.public relations and direct marketing

75. Chapter 14 - slide 75 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2010 Pearson Education, Inc. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall