Principles of Marketing

Nineteenth Edition, Global Edition

Chapter 14
Engaging Consumers and
Communicating Customer Value:
Integrated Marketing
Communications Strategy

Course Instructor
Md. Asraful Islam
Lecturer
Department of Banking and
Insurance
University of Chittagong
Learning Objectives
1. Define the four promotion mix tools for communicating
customer value.
2. Discuss the changing communications landscape and
the need for integrated marketing communications.
3. Outline the communication process and the steps in
developing effective marketing communications.
4. Explain the methods for setting the promotion budget
and factors that affect the design of the promotion mix.
Learning Objective 1
Define the four promotion mix tools for communicating
customer value.
The Promotional Mix (1 of 5)
The promotion mix is the specific blend of promotion tools
that the company uses to persuasively communicate
customer value and build customer relationships.

These tools are

• advertising,
• sales promotion,
• personal selling, and
• public relations tools
The Promotional Mix (2 of 5)
Advertising is any paid form of nonpersonal presentation
and promotion of ideas, goods, or services by an identified
sponsor.
• Broadcast
• Print
• Digital
• Mobile
• Outdoor
The Promotional Mix (3 of 5)
Sales promotion is a short-term incentive to encourage the
purchase or sale of a product or service.
• Discounts
• Coupons
• Displays
• Demonstrations
• Events
The Promotional Mix (4 of 5)
Personal selling is the personal interaction by the firm’s
sales force for the purpose of engaging customers, making
sales, and building customer relationships.
• Sales presentations
• Trade shows
• Incentive programs
The Promotional Mix (5 of 5)
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.
• News updates
• Stories
• Sponsorships
• Events
• Webpages

The entire marketing mix—promotion and product, price, and

place—must be coordinated for greatest impact.
Learning Objective 2
Discuss the changing communications landscape and the
need for integrated marketing communications.
Integrated Marketing Communications (1 of 5)
The New Marketing Communications Model

Digital Technology has transformed how companies and customers

communicate.
• Communication tools and platforms
– smartphones
– IoT devices
– brand websites
– social media
– email
– mobile web
– streamed content
– online communities
– metaverse.
• Targeted, social, and engaging marketing communication models.
Integrated Marketing Communications (2 of 5)

The New Marketing Communications Model

• Consumers are changing.
• Marketing strategies are changing.
• Advances in digital technology

Many large advertisers are moving

toward a “digital-first” approach to
build their brands. Marketing
powerhouse Unilever now spends
as much as 45 percent of its huge
global marketing budget on digital
media, making it a leader in the
digital advertising revolution.
Integrated Marketing Communications (3 of 5)

The New Marketing

Communications Model
Content marketing: As the lines
are rapidly blurring between
traditional advertising and new
digital content, many marketers
now view themselves more
broadly as content marketing
managers who create, inspire,
share, and curate marketing
content—both their own and
that created by consumers and
others.
Integrated Marketing Communications (4 of 5)

Figure 14.1 Integrated Marketing Communications

Integrated Marketing Communications (5 of 5)

The New Marketing Communications Model

Integrated marketing communications (IMC) involves carefully
integrating and coordinating the company’s many communications
channels to deliver a clear, consistent, and compelling brand and
company message.

Integrated marketing
communications: Land Rover’s
“Above & Beyond” marketing
campaign integrates the clout and
reach of traditional media with the
power of digital and social media to
create deep and personal customer
engagement.
Learning Objective 3
Outline the communication process and the steps in
developing effective marketing communications.
A View of the Communication
Process
Figure 14.2 Elements in the Communication Process
Steps in Developing Effective
Marketing Communication (1 of 10)

• Identify the target audience

• Determine the communication objectives
• Design the message
• Choose the media to send the message
• Select message source and collect feedback
Steps in Developing Effective
Marketing Communication (2 of 10)
Identifying the Target Audience
A marketing communicator starts with a clear target audience in
mind. The target audience will affect
• What will be said
• How it will be said
• When it will be said
• Where it will be said
• Who will say it
Steps in Developing Effective
Marketing Communication (3 of 10)
Determining the Communication Objectives
Marketing communicators aim to build customer–brand
relation ships and guide customers through the five As of
the customer journey
• Awareness (I know about the product),
• Appeal (I like the product)
• Ask (I want to know more and be engaged with the
brand)
• Act (I’m buying and relating to the product)
• Advocacy (I’m telling others about the product)
 Steps in Developing Effective
Marketing Communication (4 of 10)
Designing a Message
The marketing communicator must then craft the message—
deciding what to say (message content) and how to say it
(message structure and format)
Message Content—“What to Say”
Rational appeal relates to the audience’s self-interest.
(Walton highlights low electricity cost and durability)
Emotional appeal is an attempt to stir up positive or negative
emotions to motivate a purchase.
(Grameenphone shows family bonding during Eid)
Moral appeal is directed to an audience’s sense of what is
right and proper. (BRAC promotes girls’ education and social responsibility.)
Steps in Developing Effective
Marketing Communication (5 of 10)
Designing a Message
Message structure and
format is “how to say it.”

Message structure in advertising involves deciding whether to

let audiences draw their own conclusions, how to order
arguments (strongest first or last), and whether to use one-
sided or two-sided messages.

Message format: To attract attention, advertisers can use

novelty and contrast, eye-catching images and headlines,
and distinctive formats, as in this Volkswagen ad.
Steps in Developing Effective
Marketing Communication (6 of 10)
Choosing Communication Channels
and Media
Personal communication involves two
or more people communicating directly
with each other.
• Face-to-face
• Phone
• Mail or email
• Texting or internet chat

Personal communications channels: Red

Bull’s more than 4,000 Student Marketeers
globally connect directly with Red Bull fans to
generate awareness, excitement, and
unforgettable brand experiences. They are Zain Jafar/Red Bull Content Pool

“the face of the brand.”

Steps in Developing Effective
Marketing Communication (7 of 10)
Choosing Communication Channels and Media
Word-of-mouth influence strongly influences consumer decisions.
These channels include:
• independent experts
• consumer advocates
• bloggers
• neighbors
• friends
• family members
• associates

Buzz marketing involves cultivating opinion leaders and getting them to

spread information about a product or service to others in their
communities.
Steps in Developing Effective
Marketing Communication (8 of 10)
Choosing Communication Channels and Media
Nonpersonal communication channels are media that
carry messages without personal contact or feedback,
including major media, atmospheres, and events.
Steps in Developing Effective
Marketing Communication (9 of 10)
Selecting the Message Source
The message’s impact depends
on how the target audience views
the communicator.
• Celebrities
– Athletes
– Entertainers
• Professionals
– Health-care providers
Steps in Developing Effective
Marketing Communication (10 of 10)
Collecting Feedback
Collecting feedback involves the communicator
understanding the effect on the target audience by measuring
behavior resulting from the content.
Learning Objective 4
Explain the methods for setting the promotion budget and
factors that affect the design of the promotion mix.
Setting the Total Promotion Budget
and Mix (1 of 2)
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 promotion budget:

Amazon, the world’s largest
advertiser, spends $11.5 billion a
year building its brand and
advertising its full breadth of products
and services. But is that too little, just
right, or too much?
Setting the Total Promotion Budget
and Mix (2 of 2)
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
(1 of 5)
The concept of integrated marketing communications suggests that
the company must blend the promotion tools carefully into a coordinated
promotion mix.

TV has vast reach: More than 96

million Americans watched the
most recent Super Bowl on TV,
and 42 percent of football fans
watched Super Bowl ads on
YouTube before, during, and after
the game.
Shaping the Overall Promotional Mix
(2 of 5)

The Nature of Each Promotional Tool

Advertising can reach masses of geographically dispersed
buyers at a low cost per exposure, and it enables the seller to
repeat a message many times.
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 Promotional Mix
(3 of 5)

The Nature of Each Promotional Tool

Sales promotion includes coupons, contests, cents-off
deals, and premiums that attract consumer attention and
offer strong incentives to purchase.
Public relations is a very believable form of promotion that
includes news stories, features, sponsorships, and events.
Direct and digital marketing is an immediate, customized,
and interactive promotional tool that includes direct mail,
catalogs, telephone marketing, online, mobile, and social
media.
Shaping the Overall Promotional Mix
(4 of 5)
Promotion Mix Strategies
Figure 14.3 Push versus Pull Promotion Strategy
Shaping the Overall Promotional Mix
(5 of 5)

Integrating The Promotional Mix

The company must take steps to see that each promotion
mix element is smoothly integrated.
The various promotion elements should work together to
carry the firm’s unique brand messages and selling points.
Socially Responsible Marketing
Communication (1 of 2)
Advertising and Sales Promotion
• 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

Dove’s classic Campaign for Real Beauty

helped to redefine beauty and make
women feel beautiful every day. The
brand’s now-15-year-old, well-funded
Dove Self-Esteem Project has raised
awareness that self-esteem is a real issue
for young girls and is educating young
people around the word in body
Retro AdArchives/Alamy Stock Photo
confidence and self-esteem.
Socially Responsible Marketing
Communication (2 of 2)
Personal Selling
• Follow rules of “fair competition”
• Do not offer bribes
• Do not attempt to obtain competitors’ trade secrets
• Do not disparage competitors or their products