Chapter 14 - slide 1

Communicating Customer Value: Integrated Marketing

Communications Strategy

Chapter 14 - slide 2Copyright © 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

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

The Promotion Mix

Major Promotion Tools

Chapter 14 - slide 4Copyright © 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

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

20-5

Chapter 14 - slide 6Copyright © 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

Chapter 14 - slide 7Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

20-7

Chapter 14 - slide 8Copyright © 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

Chapter 14 - slide 9Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

20-9

Sanjay Dutt to promote eggs and chicken, during Egg and Chicken Festival on Friday.

This campaign was used to boost the poultry business that was experiencing a low due to the bird flu scare. The ad also feature Fardeen Khan.

Chapter 14 - slide 10Copyright © 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

Chapter 14 - slide 11Copyright © 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

Chapter 14 - slide 12Copyright © 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

Chapter 14 - slide 13Copyright © 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

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

Integrated Marketing Communications

Integrated Marketing CommunicationsCompany Carefully Integrates and Coordinates Its

Many Communication Channels to Deliver a Clear, Consistent, Compelling Message.

AdvertisingAdvertising

Personal Selling

Personal Selling

Public Relations

Public Relations

Sales Promotion

Sales Promotion

DirectMarketing

DirectMarketing

PackagingPackaging

EventMarketing

EventMarketing

Message

Chapter 14 - slide 15Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

Pepsodent Bhoot Police • Problem : Maturing sales • Insight : Research Indicates while mothers want their kids to brush teeth regularly at

Night , Kids avoid• Objective : Promote the habit of brushing • Media : TV commercial introduced Bhoot Police (pepsodent) That fight (Bhoot)

germs , another commercial Mothers prying to god to get their children to brush teeth and Pepsodent Bhoot police answer the Mother’s prayers

• Groups of parents, children and even dabbawalas were invited to sing the jingle in a live chorus on popular radio stations in a plea to children to brush heir teeth at Night.

• A contest was held for parents to pen their own lyrics to the aarti tune and the ones with the best or most funny got the chance to sing it on air , Children were also invited

• The contest was held for kids to become Bhoot Police • A school contact program reached 1,500 schools and got a pledge signed by children

and verified by parents • Interactive website was launched Results 12 lakh children were signed , campaign won Gold award at the best Media Innovation

(radio category ) , 2006hhj

Chapter 14 - slide 16Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall 15 - 16

Titan

• Titan conveys the image of a leading manufacturer of premium watches

• Finely engineered and carved watches , Titan’s packaging with embossing and engraving , personalized story cards, Exclusive service , after sales service network , Titan’s advertising and Music , Celebrity

Chapter 14 - slide 17Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

20-17

Chapter 14 - slide 18Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

Kingfisher • India’s fastest growing carrier launches in May , 2005• The good Time product – Fulfills its promise thru excellence in comfort ,

food , entertainment , in-flight service , and customer care , Brand new air busses , spacious legroom , lavish sleeperette seats for added comfort , well groomed airhostesses , personal entertainment system

• Price : Unlike the low cost carriers , Kingfisher offers full service at value prices , maintains the aspirational status

• Distribution : Adding new destinations , doorstep delivery at guest’s request

• Promotion : Communication projected a High-spirited and youthful image of the Kingfisher Airline Brand

• Sales promotion : Regular Flyers programs , corporate Flyers • Tie-in-promotions : Associate with like minded Leading International

Brands – Perfumes and cosmetics like Pierre Cardin , Paul Smith and Kenzo (with flight coupons 10,000/-), Co-branded credit card ICICI , Tata Tetley , Tabasco , Papist , Frito-Lay

Chapter 14 - slide 19Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

Saffola Gold• Saffola Gold a premium edible oil , priced 25% higher than the closest

competitor , positioned as healthy and safe for the heart .• Problem : Weakening of Brand equity • Objective : To strengthen the heart care image • Media: An Editorial Page 3 of Bombay Times on World Health Day

where celebrities pledged they would take care of their heart• Featuring pledge after National Anthem on Theatres• Using Dabbawalas supported by Safolas to pass the message to about

2,00,000 corporates thru message on T-shirts Results :• 34% brand association• 58% increase in Sales even with premium pricing• Nomination in best media Strategy

Chapter 14 - slide 20Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

Chapter 14 - slide 21Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

A View of the Communication Process

The Communication Process

Chapter 14 - slide 22Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

Steps in Developing Effective Marketing Communication

Chapter 14 - slide 23Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

Steps in Developing Effective Communication

Identifying the Target market

Chapter 14 - slide 24Copyright © 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

Chapter 14 - slide 25Copyright © 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

Chapter 14 - slide 26Copyright © 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 appealMessage Format

Designing a Message

Chapter 14 - slide 27Copyright © 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

Chapter 14 - slide 28Copyright © 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

Chapter 14 - slide 29Copyright © 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

Chapter 14 - slide 30Copyright © 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

Chapter 14 - slide 31Copyright © 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 MediaPersonal Communication

Chapter 14 - slide 32Copyright © 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

Chapter 14 - slide 33Copyright © 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

Chapter 14 - slide 34Copyright © 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

Nonpersonal Communication Channels

Chapter 14 - slide 35Copyright © 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

Chapter 14 - slide 36Copyright © 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

Chapter 14 - slide 37Copyright © 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

Chapter 14 - slide 38Copyright © 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

Chapter 14 - slide 39Copyright © 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

Chapter 14 - slide 40Copyright © 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

Chapter 14 - slide 41Copyright © 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 MixThe Nature of Each Promotion Tool

Chapter 14 - slide 42Copyright © 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 MixThe Nature of Each Promotion Tool

Setting the Total Promotion Budget and Mix

Chapter 14 - slide 43Copyright © 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 MixThe Nature of Each Promotion Tool

Setting the Total Promotion Budget and Mix

Chapter 14 - slide 44Copyright © 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 MixThe Nature of Each Promotion Tool

Setting the Total Promotion Budget and Mix

Chapter 14 - slide 45Copyright © 2010 Pearson Education, Inc.  Publishing as Prentice Hall

Promotion Mix Strategies

Setting the Total Promotion Budget and Mix

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

Integrating the Promotion MixChecklist

Setting the Total Promotion Budget and Mix

Chapter 14 - slide 48Copyright © 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 HallPublishing as Prentice Hall