1. Chapter 14 - slide 1 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall Class Ten 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 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

7. Chapter 14 - slide 7 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 Rebates Displays Proof of Concept (PoC) Trade-in Demonstrations Major Promotion Tools

8. Chapter 14 - slide 8 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Sales promotion 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

9. Chapter 14 - slide 9 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

10. Chapter 14 - slide 10 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. Shaping the Overall Promotion Mix The Nature of Each Promotion Tool Setting the Total Promotion Budget and Mix

11. Chapter 14 - slide 11 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 1:1 meetings Trade Shows Major Promotion Tools

12. Chapter 14 - slide 12 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

13. Chapter 14 - slide 13 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 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

14. Chapter 14 - slide 14 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

15. Chapter 14 - slide 15 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

16. Chapter 14 - slide 16 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall A View of the Communication Process The Communication Process

17. Chapter 14 - slide 17 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

18. Chapter 14 - slide 18 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Communication 1. 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

19. Chapter 14 - slide 19 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 2. Determining the Communication Objectives

20. Chapter 14 - slide 20 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 3. Designing a Message

21. Chapter 14 - slide 21 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 Designing a Message

22. Chapter 14 - slide 22 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

23. Chapter 14 - slide 23 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

24. Chapter 14 - slide 24 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Steps in Developing Effective Marketing Communication Message Structure is the order of precedence and content of your message Should you draw a conclusion or leave it open ended? Present the strongest arguments first or last? Present only the strong points, or defend the weaknesses as well? Designing a Message

25. Chapter 14 - slide 25 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 4. Choosing Media

26. Chapter 14 - slide 26 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 Can be controlled (sales force) or uncontrolled :- Independent experts Word of mouth Choosing Media

27. Chapter 14 - slide 27 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

28. Chapter 14 - slide 28 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

29. Chapter 14 - slide 29 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 e.g. Trade shows, events, exhibitions. Non-Personal Communication Channels

30. Chapter 14 - slide 30 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

31. Chapter 14 - slide 31 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 5. Selecting the Message Source

32. Chapter 14 - slide 32 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

33. Chapter 14 - slide 33 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

34. Chapter 14 - slide 34 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 It may prevent necessary increase in budget to turn around falling sales. It does not provide a specific percentage. Setting the Total Promotion Budget Setting the Total Promotion Budget and Mix

35. Chapter 14 - slide 35 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Competitive-parity method sets the budget to match competitor outlays Should be the industry standards, but can be misleading. Should help in avoiding promotion wars, but sometimes increases it. Setting the Total Promotion Budget Setting the Total Promotion Budget and Mix

36. Chapter 14 - slide 36 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

37. Chapter 14 - slide 37 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Promotion Mix Strategies Setting the Total Promotion Budget and Mix

38. Chapter 14 - slide 38 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall Communicate openly and honestly with consumers and resellers Avoid deceptive or false advertising Conform to all regulations Socially Responsible Marketing Communication Follow rules of “fair competition” Do not attempt to obtain competitors’ trade secrets Do not disparage competitors or their products

39. Chapter 14 - slide 39 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

40. Chapter 14 - slide 40 Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall ThankYou